IIt’s normal to be eager to retire, especially after finishing another day at the same 9-to-5 job you’ve had for decades. You may have already marked your retirement date on your calendar, but it’s a good idea to do a reality check before giving your notice.

While you may not want to extend your stay in the workforce, you probably should if any of the three things below apply to you.

1. You don’t know how much you need for a comfortable retirement

Retirement is a decision you don’t want to have to come back to later, so it’s crucial to make sure you have enough savings before quitting your job. How much will you need partly depends on how long you live and what lifestyle you want to have in retirement.

Image source: Getty Images.

If you haven’t already, think about how you want to spend your retirement and your annual spending plans. If you are planning any major one-time trips or purchases, be sure to include those as well. Next, think about the length of your retirement to see how many years of savings you’ll need.

Finally, don’t forget inflation. It’s driving up costs faster than normal right now, but it’s still a part of life. Generally, an annual inflation rate of 3% is a good assumption for retirement planning.

Even if you’ve done all of these calculations in the past, it’s a good idea to do them again just before you retire to make sure you’re still on track to reach your goals. If something goes wrong, consider delaying your retirement until you’ve saved enough.

2. You know you don’t have enough spare cash.

If you know you don’t have enough savings, retiring is not a good idea, even if you really want to. You may be able to cover your expenses for a short time, but when the money runs out, you will have to rely on family members or risk going into debt. It’s better to stay in the job market until you’ve saved enough.

It may not be as difficult as you think. By delaying your retirement, you are giving your existing savings more time to grow. But you also shorten the length – and cost – of your retirement.

You may be able to reach your goal even faster by reducing certain planned expenses from your budget, such as travel. But it is better not to rely solely on this strategy. Unforeseen costs will sometimes arise and you cannot always be sure that you can limit your expenses.

Another option you might consider if you’re not comfortable postponing retirement is a gradual transition to retirement. Rather than quitting all of a sudden, slowly decrease your hours over time. This way you will have money from a paycheck to help with your expenses. But you will also have more free time to devote to your hobbies.

3. You have a ton of debt

Retiring with debt isn’t always a problem, but it certainly increases your risk of financial insecurity. This is especially true for those with high interest credit card debt. This can quickly deplete your savings, even if you make more than the minimum payment each month.

If possible, try to pay off your high-interest debt before you retire. A balance transfer card or one Personal loan works well for this. But you can also reduce your expenses and apply your extra savings to your debt until it’s paid off. Make it your top priority, even before retirement savings.

If you have other types of debt with lower interest rates, such as a mortgage, paying it back before retirement is not as crucial. But if you keep this debt in retirement, make sure you have budgeted for it. You can also consider refinancing to see if you can score a lower interest rate.

Only you can decide when it’s time to retire. But if you want the most enjoyable retirement possible, you first need all your financial ducks in a row. Take stock of your current finances and review your retirement plan. It shouldn’t take you too long, and it can help you feel confident that you’ve done everything you can to prepare for your future.

10 stocks we like better than Walmart
When our award-winning team of analysts have investment advice, it can pay to listen. After all, the newsletter they’ve been putting out for over a decade, Motley Fool Equity Advisortripled the market.*

They have just revealed what they believe to be the ten best stocks for investors to buy now…and Walmart wasn’t one of them! That’s right – they think these 10 stocks are even better buys.

View all 10 stocks

Equity Advisor Returns 2/14/21

The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.