Think you're ready to retire? Don't bite the bullet until you've hit these 6 key milestones

Retirees often find themselves unprepared for the financial burden that lies ahead, with a recent study revealing that only half of retirees rate their household financial well-being as very good. A quarter of retirees found healthcare costs to be higher than they expected, while two in five reported that their overall spending in retirement exceeded their expectations.

To avoid such pitfalls, it's crucial to hit six key milestones before declaring the end of your work life. First and foremost, determine whether you have enough money to sustain your retirement years without a steady paycheck. This can be achieved by following the 25X rule, which suggests that your assets should be worth at least 25 times your annual expenses. However, it's essential to understand that this rule does not guarantee the annual income your assets will generate in retirement.

Next, decide when you want to claim Social Security benefits and what your monthly payment will be. Consulting a professional financial advisor can help you create a customized plan tailored to your income, investments, and expenses. Additionally, make a concerted effort to eliminate or at least minimize non-mortgage debt before retirement.

This may include paying off your mortgage, as this will free you from the burden of monthly payments and interest charges, thereby boosting your financial security when you no longer have a regular paycheck.

Unexpected medical expenses can also contribute to retirees' debt. A survey found that 17% of older people carry an average of $9,144 in debt due to outstanding medical bills. It's essential to understand Medicare, its enrollment process, and which plan to sign up for, as confusion can lead to difficult situations.

If you have assets to leave behind for your heirs, it's advisable to create a comprehensive estate plan before retiring. Working with an advisor on this can help maximize potential tax advantages and other benefits. Lastly, it's crucial to nurture relationships outside of work to avoid loneliness and boredom in retirement. Consider taking a trial run by taking a month or two off from work to experience retirement before officially calling it a career, allowing you to assess whether you are truly ready to retire at that time.