8 Signs You’re Not Ready to Retire in 2025

Even if you enjoy your job, it’s not unusual to sneak glances at the calendar, counting down the months until retirement. You may have determined that 2025 has arrived, the year you’ve been waiting for your entire working life: the year of retirement.

Find out: 2 things empty nesters should stop investing in to boost their retirement savings.

Of course, 2025 could be the year you retire. But can you retire this year without going broke soon and putting your financial security at risk? Could 2025 be the year you retire? comfortable without having to get a job again? Well, it couldn’t be. Experts rated eight signs that you are completely not ready to retire in 2025.

You don’t exceed your budget

The first sign that you’re not ready to retire? You’re bad at budgeting. Spending and tracking your expenses will be critical in retirement.

“If you don’t have a clear idea of what your expenses and income will be in retirement, you should be a little worried,” said Erica Kullberg, a personal finance expert, attorney and founder of the company. Erica.com. “Without a reasonable monthly budget that includes plans for things like housing, healthcare and recreation, it’s hard to know if you can live 20 years or more.”

Keep in mind: 7 things you’ll regret when you retire

You have poor diversity in risk or return streams

Not having enough variety in your risk or return streams is another big sign that you’re completely unprepared to retire in 2025.

“If you feel like your retirement plan is dependent on a single source of income, such as Social Security or the Single Pension, you are taking on a lot of risk, especially when the level of those sources is insufficient or uncertain,” Kullberg said.

You don’t have an income-driven retirement plan

You can have an effective and practical plan for how you spend your income. But this plan probably won’t work in retirement. You’re entering a whole new financial life in which you live by what you earn, not by what you earn.

“If you were planning on using the same strategy for the income phase that you used for the accumulation phase, you have a problem,” said Greg Luken, the company’s founder. Luken Investment Analytics. “The income phase is radically different from the accumulation phase of life. The same reason dollar-cost averaging can work in the savings stage is flipped on its head and works against you in the income stage. That’s why it’s so important to have a plan that targets specific income.”

You haven’t spent time on tax planning for your retirement years.

There’s also a sign that, from a legal perspective, means you’re not ready to retire in 2025: You haven’t spent time planning your taxes for your retirement years.

“Retirement has complex tax implications. If you haven’t structured your retirement accounts, investments or income streams to minimize taxes, you may be ill-prepared for retirement,” said Paul Koenigsberg of Koenigsberg and partners. “Tax-efficient withdrawal strategies can make a big difference to your retirement savings. Additionally, without proper tax planning, you could face higher taxes on Social Security benefits, RMDs, or even early withdrawal penalties.”

Your cost of living is too high

When you retire, the way you receive money will change and, depending on your retirement savings, so will how much you save. It’s likely that you won’t be living on less money in retirement. Can you cope with your cost of living if your income drops? Because your cost of living won’t necessarily go down along with it.

“Too many people assume that living expenses will drop significantly in retirement, but the reality is that by the time you retire, the kids will have moved out, so that’s unlikely,” said Jeremy Bohn, the company’s founder. Paisline Wealth Management, LLC. “If anything, most living expenses are about the same, while travel tends to be harder in early retirement. This is the time when people are most active or when they want to travel to see their adult children.”

You haven’t taken into account rising healthcare costs

In addition to accounting for many expenses to stay high in retirement, you also need to account for expenses that will be higher in retirement, such as medical expenses that Medicare doesn’t cover.

“Healthcare can be one of the largest expenses in retirement, and failure to plan for long-term care, Medicare premiums or unexpected medical expenses can put a strain on your finances,” Kullberg said.

You still have a lot of bad debt

Still carrying high interest debts, such as those associated with credit cards? This is a sign that you are not ready to retire yet.

“Having debt can create significant financial pressure during retirement, when income is typically lower,” said Rebecca Avram, a mortgage consultant at the company. Senior Citizens Lending Center. “Paying off or consolidating these debts before retirement can help you avoid stress and give you more financial freedom.”

You don’t have a realistic plan for how you will spend your days.

The final sign that you’re not ready to retire isn’t financial; it’s actually more like personal logistics. You are not ready to retire unless you know how happy you will actually be in retirement on a social and intellectual level.

“A lot of people fall into the trap of thinking that the joy of retirement is not having to work,” Bohn said. “But the reality is that lack of time and lack of vision for how you would like to spend it leaves most people without purpose. This is not the path to a satisfying retirement.

“Those who thrive in retirement strive for the things they enjoy, which are spending more time with family and being more active in hobbies,” Bonet said. “It’s very different from running away from something.”

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This article originally appeared on GOBankingRates.com: 8 Signs You’re Not Ready to Retire in 2025