Four Surprising Signs You’ll Never Retire (and How to Fix Them)

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Retirement is what dreams are made of. It's what we are working and saving toward. But for many of us, a nagging fear persists: Will we ever be able to retire?

We worry we won’t have enough money to support 20 to 30 years of a post-work lifestyle to which we've grown accustomed.

While it's one thing to fret about being able to afford retirement — especially if you've been diligently saving — it's entirely another to ignore the clear warning signs that it might be out of reach. Overlooking these signs can prevent you from changing course before it's too late.

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The good news: While there are telltale signs that you might never be able to retire, there are also concrete actions you can take to alter the path you seem to be on. Here’s a look at four of those signs and how to fix them.

1. You're spending more than you're earning

If you’re living beyond your means, the older you get, the harder it is to retire. Overspending hurts your ability to save and to build an emergency fund, and to ever stop working.

When you're overspending, you’re likely to take on debt, which can limit what you can do when you retire, such as buying a new car, pursuing a hobby or traveling. Overspending while you're still working might cause you to work longer than you planned just to stay above water.

How to change it: If spending is out of control as you get closer to retirement, Tyler End, CFP and CEO/Co-Founder of Retirable, says it’s time to make a drastic change to your lifestyle.

Downsizing where you live can have a positive impact, since housing tends to account for the biggest portion of our budgets.

If you don’t want to change your housing, End says be prepared to make other big lifestyle changes to reduce your spending. It might require you to work longer, but at least you’ll be on the path to building a retirement nest egg and eventually retiring.

2. You have no idea how your savings will generate income in retirement

Just because you have money saved for retirement doesn’t mean you're ready to stop working. If you have no idea how your money will generate a steady income in retirement, Aaron Cirksena, founder & CEO of MDRN Capital, says it's a sign you're not ready to move into the next chapter.

“People are used to staying aggressive in stocks,” says Cirksena. “It's hard to shift the mindset from wealth accumulation to income planning.”

If you don’t plan how your savings will generate income in retirement, you could run out of money prematurely. This could create financial insecurity, limit lifestyle choices or force you to find a part-time job or return to work full-time.

How to change it: To ensure your money lasts in retirement, Cirksena suggests sitting down with a financial adviser to come up with a drawdown plan that fits your unique situation. It should take into account taxes and required minimum withdrawals, which kick in at age 73.

“It doesn’t matter how old you are and how much you are sitting on,” he says. “Have someone objectively go through it.”

If you want to figure it out on your own, there are some general guidelines you can follow, including the 4% rule, the 80% rule, and the rule of 25, but they won’t be tailored to your specific situation. An online retirement calculator can help you figure out how much you should spend each year in retirement.

3. You’re carrying a lot of debt

If you're thinking about retirement but still have a lot of credit card debt, that’s a big sign you’re not ready to stop working.

“If a lot of your retirement savings will go toward paying off debt, you risk running out of money before running out of oxygen,” says Steve Parrish, professor of Practice, Retirement Planning at The American College of Financial Services.

“If you retire, you may be paying for debt rather than enjoying your retirement.”

If you have a lot of debt in retirement, it lowers your disposable income, creates more financial stress and could make it difficult to cover your expenses. At the very least, it might force you to compromise your lifestyle in retirement.

How to change it: Focus on paying off high-interest debt first. There are several strategies you can employ, including lowering your interest rate via a balance transfer, reducing your expenses and funneling the money to your debt, getting a part-time job or putting any bonuses and tax refunds toward that debt. Make paying off that debt a priority before you retire.

Social Security is supposed to supplement your retirement income, not be the main source. If it is, Parrish says, you should probably work longer.

“Taking Social Security early means mortgaging your longevity,” says Parrish. “If the only way you’ll possibly make it through retirement is to take Social Security early, it's a sign you may want to look for some other solutions.”

If you take Social Security before your full retirement age, which is 67 for people born in 1960 or later, you’ll see an up to 30% reduction in payments for your lifetime.

How to change it: Working until your full retirement age will increase your monthly Social Security benefit, plus it will give you more time to save.

“Even six months more of working can make a huge difference,” says Parrish. “You're getting to put more into your Social Security, you're still contributing to your 401(k), and you're shortening the period you're spending.”

If you're burnt out, take a vacation, but try to work longer, he says.

Ignore the signs at your peril

The good news is that all four are signs, not foregone conclusions. While you might be overspending, staring at high credit card bills or unsure what to do with the money you've accumulated, there are concrete actions you can take to ensure you have the retirement you hoped for.

It might require some belt tightening, planning or working a little longer, but if you recognize the signs and take actions today, you'll set yourself up for a good retirement tomorrow.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.