September 21, 2026
Retirement readiness is about more than reaching a certain age or seeing a certain number in your investment accounts.
You may have accumulated significant savings and still have unanswered questions about taxes, income, healthcare, Social Security, market risk, or your estate. On the other hand, you may discover that you're more prepared than you thought.
So, how do you know when you're financially ready to retire?
A good place to start is determining whether your financial resources and retirement strategy can reasonably support the life you want to live.
Before determining whether you have enough to retire, you need to understand what you're asking your savings to support.
Start by estimating your expected retirement expenses. Consider both everyday spending and larger or less predictable costs, including:
Retirement doesn't necessarily mean spending less. Your spending may simply change.
Next, determine where your retirement income will come from.
Potential sources could include Social Security, pensions, retirement accounts, taxable investments, business interests, real estate and other assets.
The important question isn't simply, "How much do I have?"
It's:
"How will these resources work together to fund my retirement?"
A $3 million portfolio, for example, doesn't automatically translate into a specific amount of sustainable retirement income. Taxes, investment strategy, withdrawal rates, longevity and spending all influence the answer.
Retiring at 55 creates a very different planning horizon than retiring at 70.
Someone retiring relatively early may need their assets to support several decades of spending. That makes longevity an important part of retirement planning.
Rather than trying to predict exactly how long you'll live, a retirement strategy can consider what happens if you live significantly longer than expected.
A retirement plan shouldn't only work when everything goes according to plan.
Consider what would happen if:
The goal isn't to predict every possible event. It's to build enough flexibility that one unexpected development doesn't automatically derail the entire plan.
Retirement planning shouldn't stop at the day you leave work.
There are decisions that may continue throughout retirement, including investment management, withdrawal strategies, taxes, Social Security, Medicare, required minimum distributions and estate planning.
A coordinated strategy considers how those decisions interact over time.
Financial readiness isn't defined by a single age, account balance or rule of thumb.
You may be financially ready for retirement when you understand your expected spending, have identified reliable sources of income, have considered taxes and healthcare, and have a strategy designed to adapt when circumstances change.
The better question may not be "Can I retire?"
It may be:
"How prepared is my plan for the retirement I actually want?"
Related Questions:
How much money do I need to retire?
Is $2 million enough to retire?
Is $3 million enough to retire?
What are the biggest financial risks in retirement?
If you are approaching retirement, download our free retirement toolkit, which includes our retirement book and several useful guides that cover the most important financial considerations for retirement.
If you have questions about your retirement strategy, call us at 602.343.9301 or schedule a meeting with one of our advisors.
This content is provided for informational purposes only. It is not a guarantee of future success, is subject to change, and is not intended to serve as the basis for an individual’s financial decisions. Strategy Financial Group is not associated with, or endorsed by, the Social Security Administration or any governmental agency. Strategy Financial Group does not provide specific legal or tax advice. Please consult with a qualified professional for guidance on your individual situation. Strategy Financial Group is not associated with, or endorsed by, the Centers for Medicare & Medicaid Services or any governmental agency. Investment advice is offered through Strategy Financial Services, LLC, a registered investment adviser. Insurance products are offered through Strategy Financial Insurance, LLC, an affiliate of Strategy Financial Group, LLC.
