Are you ready to retire in 2026? Ask yourself these 4 questions to find out.

With the end of the year quickly approaching, you may be in the home stretch of your career if you’re scheduled to retire in 2026. But if you’re going to stick to that plan, it’s important to be confident that you’re ready to finish your time in the workforce. Here are four questions you should ask yourself if you are determined to retire in 2026.

Your monthly spending as a retiree may be similar to what you spend now. Or it can be smaller or larger.

Before you retire, sit down and create a real budget based on your expected expenses. Be sure to factor in costs that could increase because you’re not in an office every day, such as higher heating and electricity bills. On the other hand, you can deduct the cost of things like your daily parking fee if you’re no longer going to work.

Ideally, you will have several sources of income to enjoy in retirement. These could include Social Security benefits, withdrawals from a retirement account, and, if you’re very lucky, a workplace pension (although that’s less likely if you’re a private sector employee).

If your goal is to retire in 2026, now is the time to add up all those income sources and make sure they line up with your projected expenses. If you have Social Security, it’s pretty easy to determine what benefit you’ll get. Simply create an account at SSA.gov and check your most recent income statement to get an estimate of your monthly payments.

If you are entitled to a pension, someone at your workplace should be able to give you details about what to expect, or at least tell you where to look.

Calculating how much income your retirement savings will provide you can be a little more complicated. This is because you will need to decide what withdrawal rate you will use to ensure your money lasts as long as it needs to.

If you follow the 4% rule, which is a common strategy for retirees, and have a $1 million IRA or 401(k), that gives you $40,000 in your first year of retirement. It will then adjust future withdrawals for inflation. You can divide that $40,000 by 12 to see what monthly income you’ll get, and then add it to your Social Security and pension payments to get a complete number.

If you will be at least 65 when you retire, you can generally get health coverage through Medicare. If not, you need a plan, as being uninsured for any period of time could be very dangerous for your finances.

If you are around age 65 at the time of your retirement, maintaining your workplace coverage through COBRA may be an option to consider, albeit an expensive one. If not, start researching health insurance plans now to know what costs to anticipate.

As important as it is to be financially prepared for retirement, it is also important to be emotionally prepared. As you prepare for that change, ask yourself what you actually plan to do with your time once you stop working.

You don’t want to end up bored and lost once you no longer have a job to go to. So make sure you have some activities scheduled. It could be a combination of volunteer work, social plans, hobbies and travel.

Retirement may be closer than ever this time of year, so it’s essential to ask yourself these key questions as soon as possible. Doing so could help you retire feeling more confident and prepared.

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Are you ready to retire in 2026? Ask yourself these 4 questions to find out. was originally published by The Motley Fool