Are you in good shape to retire? Here are 5 telltale signs you're ready for a comfortable post-work life in America

What does it take to land in the retirement equivalent of the winner’s circle? These five signs will show you where you stand on the road to that most desirable destination.

1. You’re mortgage-free

If you’re a homeowner and have paid off your mortgage, then congratulations: You’ve cleared a huge first hurdle towards retiring well. You’re also in select and shrinking company. A 2023 report by the Joint Center for Housing Studies of Harvard University found that the share of homeowners aged 65 to 79 with mortgages nearly doubled (from 24% to 41%) between 1989 and 2022.

In practical terms, here’s what that albatross looks like: Assuming a 15-year mortgage of $500,000 at 6% interest, you’re paying roughly $50,000 a year.

2. Your expenses are low

Just as “spend less than you make” is a mantra for the working years, spending discipline in retirement means not worrying about your money running out. And contrary to what many may think, managing expenses doesn’t equate to deprivational living. Retirement gives you a chance to downsize in sensible ways that can lower your utilities and pare down your possessions, for example. And if you lived frugally prior to retirement, it’s almost a matter of muscle memory to keep the good habits going.

Go ahead and take that globetrotting trip if you can afford it. But if you shop around for the best prices just as you’ve always done, then so much the better.

3. You have (and safeguard) your health

A sound mind and body means you’ll cough up less on health care. A 65-year-old retiring today can expect to spend $157,500 in health-care and medical expenses throughout retirement, according to the Fidelity Investment Retiree Health Care Cost Estimate for 2023.

Yes, yes, yes: You’ve heard about diet and exercise ad nausem. But stop to consider how quality of life in retirement is enhanced most by maintaining your health, with happy consequences that keep money in your pocket. Cap it off with great health insurance, including Medicare, and you’ve set the stage for a smooth retirement.

4. An empty nest means a bigger nest egg

On the way to raising kids and sending them to college, you may have glossed over just how much it cost you from crackle to cap and gown. The U.S. Department of Agriculture reported in 2017 that it takes an average of $233,610 to raise a child from birth to age 18. Adjusted for inflation, that number now stands at around $300,000.

Once your kids are old enough to stand on their own and earn their keep, you can breathe a huge sigh of financial relief. It’ll also feel like a mission accomplished.

5. You have an emergency fund

If you lived with an emergency fund before retirement then you know the wisdom of having money socked away for the unexpected. Those who retire with such funds not only know peace of mind but also the rules of thumb to follow.

Car, home and health issues are among the most common big-ticket emergency needs. As for how much you need, three to six months' worth of expenses is a common amount you’ll see everywhere, for both the non-retired and those who retire in excellent and enviable shape.