There’s no magic age for retirement. One person might retire at 30, and another might continue working well into their 70s.
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So how do workers know when the time is right to walk away from their day job — or when they should continue clocking into their 9-to-5?
The following signs indicate that you’re probably not ready to retire yet, even as you enter your eighth decade on Earth.
You Don’t Know Your Numbers
Before retiring, you need a clear picture of your post-retirement expenses and income.
“Anyone who does not have a plan and budget for retirement is not ready yet,” said attorney and personal finance expert Erika Kullberg of Erika.com.
“Before you retire, you need to take the time to figure out the lifestyle you can support. Also, the types of expenses you have change after retirement. For example, you might not have commuter costs, but you may need to pay Medicare deductibles or long term care insurance,” Kullberg explained.
Crunching the numbers isn’t just about logistics. Mary Randolph, legal and retirement expert for Nolo, added, “Doing this math gives many people peace of mind, especially if they discover that the income they’ll need is much less than they originally thought.”
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You Still Have Debts
If you still have high-interest unsecured debts, consider it a major red flag.
“Having debt you can’t pay off is a sign you may not be able to retire,” Kullberg said.
People carrying debts also tend not to have adequate emergency funds — which can cause their debts to spiral out of control.
Kullberg added, “Before retiring, people in their 70s also need to make sure they have a big enough emergency fund that they won’t wind up in debt during retirement.”
Even relatively low-interest secured loans, like mortgages, should give you pause before you retire.
Jonda Lowe, faith-based personal finance expert and founder of Your Holy Money, explained, “Housing is our biggest budget expense, averaging 38% of after-tax income. Once you retire, your income shrinks, which means your expenses must follow suit. For most of us, you simply can’t afford to retire with a mortgage. Sell the house, downsize and pay cash for your retirement home if you expect to enjoy your golden years.”
You Haven’t Planned for Healthcare and Long-Term Care
Many workers nearing retirement expect Medicare to cover every health-related expense. They’re in for a rude awakening.
“Medicare has gaps which are often excluded,” explained Chris Heerlein, financial advisor and CEO of REAP Financial. “These gaps include premiums, deductibles, copays and expenses for dental, vision and hearing aids. Moreover, long-term care, which isn’t covered by Medicare, can cost tens of thousands of dollars per year.”
Start with a realistic assessment of your projected annual health care costs post-retirement, budgeting for higher care costs as you age. Explore ways to cover these with insurance, as well, to minimize the risk of huge unforeseen costs.
“This could include exploring Medicare Advantage plans, supplemental insurance and even health savings accounts — if eligible — to minimize out-of-pocket expenses,” Heerlein said.
You Have a Dependent
It’s one thing to budget for your own living expenses in retirement, and perhaps a spouse. But what if you also care for a dependent?
“People in their 70s who are caring for a disabled or dependent family member may need to continue working longer,” said Kullberg.
The math changes when you add another person’s living expenses into the mix.
You Still Love Working
When you do work you love, why would you want to stop?
“Many 70-year olds have invested in their financial acumen, technology skills and health, [but] continue to enjoy the reputation and gravitas of their professional identities,” said Sherry Finkel Murphy, CFP and founder of retirement advisory Madrina Molly. “If they continue doing what feeds their passion, they are investing in their longevity and improving the success of their plans by not spending down their assets prematurely.”
Jackie Lange, who started Panama Relocation Tours in 2010, knows exactly what Murphy means — she spends her working hours teaching people who worry they can’t afford retirement in North America how to live well in Panama with a much lower cost of living.
“I am a 70-year-old who is not ready to retire now and probably never will, even though financially, I could easily do so. I love what I do every day and cannot imagine just retiring,” she said.
Or You Want To Work Part Time
Of course, you don’t have to pick up and move to a new country to find a good fit to keep working. Some workers retire from a high-stress job to a more fun one, or even to working part time.
“Many people who enjoy the bustle and creativity of the workplace find that working part time after retirement offers the best opportunity to stay busily involved in life,” said Randolph. “And, of course, working a few extra years can go a long way toward helping solve money problems, especially if you can put off claiming Social Security benefits — and avoid getting penalized for working while collecting benefits.”
Many retirees find that they miss the social interaction, the structure in their week, the feeling of purpose. Consider continuing to work — but doing so in a role you love, rather than the same rat race you’ve run in for so many years.
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This article originally appeared on GOBankingRates.com: 5 Signs You’re Not Ready To Retire at 70
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