These warning signs say it’s time to retire, and the risks of the 'one-more-year' trap may surprise you. So what should you do?

According to a recent report from the Transamerica Center for Retirement Studies (1), a large share expect to continue working well past traditional retirement age (36% of employed workers expect to retire at 70 or older, or say they do not plan to retire).

About 69% believe that even if they work until retirement, their savings won’t be sufficient to meet their needs.

So, how will you know when you’re ready to retire? The answer is both emotional and financial.

Emotional readiness matters

When it comes to being ready for retirement, the numbers definitely matter.

According to the Federal Reserve, Americans ages 55-64 have roughly $185,000 in median retirement savings, far below the $1.26 million target that many Americans say is what they need to retire comfortably (2) (3). Social Security typically replaces about 40% of the average worker’s pre-retirement income. (4).

While it's important to build up your retirement funds, waiting too long can cost you, too.

If, for instance, your job requires you to work long hours and generally causes you stress, dragging out retirement could backfire.

Chronic workplace stress doesn’t just make you miserable; it’s linked to hypertension, chronic headaches, and a higher risk of stroke and heart disease (5) (6).

Don’t forget that every extra year on the job is one less year to enjoy retirement while you’re still relatively healthy. And staying in the workforce past age 73 can also trigger hefty tax bills as required minimum distributions kick in, pushing retirees into higher brackets. (7)

So while having a solid nest egg is critical, it’s worthwhile to do a gut check and make sure you're ready emotionally, too.

10 signs you may be ready to retire

Try running through this checklist to get a better picture of your retirement readiness (8):

1. Work isn’t fulfilling. Don’t feel energized by work? If you could care less about what you’re doing 9 to 5, it’s a flashing neon sign.

2. Tech fatigue. If you don’t think you can manage another new software or deal with a process update, it could be time to check out.

3. Promotions aren’t exciting. If climbing the career ladder feels irrelevant, or impossible, you may be psychologically done.

4. Sunday dread starts early. The “Sunday Scaries” creeping in earlier and earlier could be your body asking for a new rhythm.

5. You’re always checking your retirement accounts. Constant portfolio-checking can mean that your brain is exploring retirement possibilities.

6. Hobbies and volunteering dominate your daydreams. Want to do more for your community, or explore your lifelong dream of woodworking? Your identity might be shifting away from work.

7. You notice a generational gap at work. Colleagues talk about their babies; you think about caregiving or grandkids. While working with younger generations can be a learning and mentoring opportunity, the disconnect can trigger retirement thoughts.

8. You’re jealous of retired friends or partners. Resentment toward others’ free time can mean that you’re ready for a slower pace.

9. Your boss is unbearable. If the idea of working with your manager for years feels impossible, the clarity could be another way of pointing you to the door.

10. Physical signs are unavoidable. Joint aches, fatigue, or declining energy at work can show your body is ready for change.

Make the choice with your heart and your head

Run the numbers first.

Before acting on emotional signals alone, get a clear picture of your financial foundation. Start with guaranteed income sources like Social Security, pensions, or annuities.

Next, calculate your annual spending, including housing, healthcare, and discretionary expenses.

You can consider comparing your savings to your spending using the 25x rule: multiply your annual spending by 25 to estimate the nest egg that you’d need to retire.

Consider a phased retirement.