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How to know if you’re ready to retire

Jean Chatzky | Jean Chatzky
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How do you know when it’s time to close the book on your career? Is there an ideal retirement age? That’s what we’re tackling today.

I’m Jean Chatzky, and this is Bankrate Bottom Line.

For the record, I’m in the camp that never wants to retire. But I’m also realistic — so when it comes time for me to think about pulling away, I’ll ask myself these three questions:

  1. Have I saved enough money to fund the lifestyle I want? If not, I’ll consider working part-time until I feel more financially stable.
  2. How will I spend my time? Putting my career behind me will open up large windows of time in my day. I’d like to ease out of work by slowly filling my days with other interests or hobbies.
  3. Where will I live? This is a question my husband and I discuss often, though we haven’t landed on an answer. In the meantime, it’s fun to dream.

And by the way, the average retirement age is now 62 — up from 57 in the early 1990s — and researchers predict that by 2020, a quarter of American workers will be age 55 or older. To help you figure out if you’re financially ready for retirement, try out Bankrate’s retirement calculator. And in the meantime, it might be a good idea to share this video with your spouse.