DEFINITION of 'Retirement Readiness'
The state and/or degree of being ready for retirement. Retirement readiness typically refers to being financially prepared for retirement, or the degree to which an individual is on target to meet his or her retirement-income goals so that the standard of living enjoyed while working will be maintained after retirement.
BREAKING DOWN 'Retirement Readiness'
Although retirement readiness depends on each person's financial situation, many financial experts believe that retirees need between two-thirds and three-quarters of their pre-retirement income in order to maintain the same standard of living in retirement as they enjoyed when they were working.
Financial readiness is only one part of being ready for retirement. Being prepared mentally, socially, emotionally and physically are also important; you need to take part in activities that will satisfy these aspects of your life. Knowing where you will live, when you will retire and whether you will go back to work or school are all important aspects of financial readiness.