Retirement may seem like a long way off, but it’s never too early to start planning for it. After all, the sooner you start saving, the more time your money has to grow. But how can you tell if you’re on track for retirement? Here are four signs you’re on your way:

You’re saving enough

One of the biggest concerns people have about retirement is whether they’ll have enough money to live on. There are a few key ways to gauge whether you’re saving enough. First, how much money do you hope to have saved by the time you retire? This number will be based on several factors, including your projected expenses and desired lifestyle in retirement. Next, how much are you currently saving? If you’re not saving as much as you’d like, there are a few ways to boost your contributions. You may be able to increase the percentage of your income that goes into your retirement account, and you may be able to make catch-up contributions if you’re over the age of 50. Another key factor is the length of your retirement. If you plan to retire early, you’ll need to save more than someone who plans to retire at age 65. Ultimately, there’s no one-size-fits-all answer when it comes to saving for retirement, but by keeping an eye on these key indicators, you can help ensure a comfortable retirement.

You’re working on paying off debt

Having a lot of debt in retirement can be a burden, especially if you’re planning on living on a smaller income. This is one reason why it’s important to try to get rid of as much debt as is reasonable before retirement.

While paying off debt can be challenging, there are a few things that can make it easier. First, try to focus on paying off high-interest debt first. This will save you money in the long run and help you get out of debt faster. Second, make a budget and stick to it. This will help you track your expenses and make sure you are putting enough money toward your debts each month.

You’re thinking about lifestyle changes

This can look different, depending on where you are in relation to retirement. For some, this means downsizing to a smaller home or moving to a warmer climate.  Retirement can be a great time to make these kinds of changes, as it offers the opportunity to simplify one’s life and focus on personal wellbeing. However, it’s important to consider all the implications of a lifestyle change before making a decision. For example, downsizing may mean giving up certain amenities or living in a less convenient location. Moving to a new climate may require leaving family and friends behind. By taking time to think about lifestyle changes in retirement, you can help ensure an enjoyable future for yourself and loved ones.

You’re thinking about how your finances and expenses will change

For many people, retirement is a time to relax and enjoy a more laid-back lifestyle. But it’s also a time when your finances will change. First, your income will likely be different. If you’re used to receiving a paycheck, you’ll need to adjust to living on a fixed income from your retirement accounts, Social Security, pension, or other resources.

Second, your expenses will probably change in retirement along with your lifestyle. Even though you’re no longer working, you’ll still have bills to pay. In addition, you may have more free time on your hands, which can lead to increased spending on leisure activities.

Finally, your tax situation will likely change in retirement. Once you’re no longer working, your income may drop into a lower tax bracket. However, if you have substantial assets, you may be subject to higher taxes on those assets. The way you file your taxes will also be different, and it can be useful to be prepared, know what happens if you file your taxes late, and how to file for an automatic extension.