Retirement – it’s one thing to be working and to occasionally think about it, but another to actually be facing retirement. A key question becomes, are you ready to retire?

Most people really don’t give a lot of thought to the idea of their lifestyle in retirement. Having been through that process myself, I can tell you there are a lot of big decisions to be made. It would certainly be a good idea to give some thought to how much income you’re generating while you’re working, and how much you’re actually going to have and require when that income stops.

In addition to the financial component, there’s the issue of emotional readiness. And during these times with the economy distressed and housing values well below their former highs, failing to have some type of plan regarding your finances and newly found free time might result in a less than satisfactory move into retirement.

One of the first questions you might consider asking yourself prior to actually retiring is, do I enjoy my job? If so, perhaps you should entertain the possibility of working longer to add even more security to your retirement years.

Assuming you’ve lived on a budget during your working career, I can tell you that the day you retire, not having that income stream really changes the reality of your budget, so any financial surprises you may face can certainly create an immediate hardship.

If you’ve always envisioned retirement meaning more free time for travel, playing tennis or golf, having the time to go out to dine with friends at restaurants, you could be surprised at the amount of money it’s going to require to do that.