Jun 22, 2026
The average age of retirement in the U.S. is 65 for men and 63 for women, according to the Center for Retirement Research. Of course, some hope to retire earlier, but doing so requires saving and investing aggressively throughout your career to ensure you’re financially prepared.
Retirement is also a major milestone. Even people who have planned carefully, prepared diligently and appear ready on paper can feel nervous about taking the leap.
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Take Angela and Matt, for example. The couple set a goal of retiring early and even created countdown timers on their phones to track the days and hours until retirement. Angela plans to retire at 59 and Matt at 60.
They maintain a spreadsheet tracking their investments, and by every measure, it shows they’ll definitely be ready when they reach those milestone ages. That day is about a year away. Still, they’re nervous about whether they’ll really be prepared when the big moment comes.
So, how can Angela and Matt determine whether they’re ready to hand in their notice when the countdown reaches zero?
Set a clear goal early and keep tabs on it
If early retirement is on your radar, it’s not something you can start planning for just a year or two before your target date.
“You should start looking at your plan at least five to 10 years prior to your expected retirement age,” Domenick D’Andrea, founder of DanDarah Wealth Management, told Moneywise.
D’Andrea recommended reviewing your proposed retirement budget, debt obligations, any major expenses you expect during retirement and investment strategies that align with your risk tolerance.
Based on your expected spending and anticipated investment returns, you can determine how large your nest egg needs to be. You’ll also need to factor in expenses such as health insurance premiums, since you won’t qualify for Medicare until age 65, as well as the possibility that you may not claim Social Security right away and may have to live on savings alone.
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Angela and Matt’s countdown timers are a good approach because they help keep the couple on track. They know exactly how much time they have left to hit their savings goal, which helps keep them motivated.
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Make sure your portfolio will last
One reason Angela and Matt are hesitant to pull the trigger is that they’re worried that what works on paper may not work in real life. Sequence of returns risk is a big reason why.
Sequence of returns risk refers to the danger that poor investment performance early in retirement can have an outsized impact when you’re drawing income from your portfolio.
For example, if stock prices are down, you’ll need to sell more shares to generate the same amount of income. That reduces your holdings more quickly and makes it harder to benefit from future market gains. Over time, this can significantly increase the risk of running out of money.
There are approaches to limit this risk. D’Andrea recommends the bucket strategy.
“I would build a bucket strategy with three goals in mind – guaranteed income, capital preservation, and growth,” he said. “There’s peace of mind knowing that you have enough income to cover your day-to-day expenses with guaranteed sources, a bucket to comfortably grow assets, and a long-term growth bucket to continue to build.”
Consider getting professional help
You may also feel more confident about retiring if a professional confirms you’re ready.
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“Retirement is not only a financial decision, but also an emotional one,” D’Andrea said. “I would suggest that you speak with a financial professional with a proper planning process who will assess your overall situation.”
If a spreadsheet showing you have enough money isn’t enough to give you confidence, an advisor who can evaluate the bigger picture may provide the reassurance you need.
If your advisor helps you create a clear plan to generate income, preserve your wealth and stay within your budget, you can retire with confidence. If not, you’ll know where you stand and can adjust accordingly.
“If the numbers don’t work, it may be time to review all options and see if saving more and working a few more years might be a better choice,” D’Andrea said.
Since Angela and Matt are ready to go, taking these steps should enable them to retire on their own schedule and keep those countdown timers running.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
