Professionals work hard to achieve both short- and long-term goals. Retirement certainly qualifies as a long-term goal, and many people spend decades building and investing in a nest egg that they hope will help them enjoy their golden years to the fullest extent.

The decision regarding when to retire is affected by a host of variables, so a good time for one individual may not be ideal for another. Professionals on the cusp of retirement can consider several factors as they try to pick the right time to retire.

Individuals should familiarize themselves with the rules of Social Security so they can maximize their benefits. Individuals can begin claiming Social Security benefits at age 62, although those benefits will be reduced by 25%. If individuals wait until they are 66 or, in some cases, 67 to claim Social Security benefits, they will receive their full benefits. The Social Security Administration notes that those who can wait until age 70 to claim benefits will receive as much as 132% of the monthly benefit they would have received at full retirement age. These distinctions are especially important for people who will be looking to government-sponsored programs to provide significant financial support in retirement. Individuals who won't rely as heavily on such programs may be able to retire earlier.

Seniors should also consider their debts. Carrying debt into retirement can be risky, so it's ideal to pay off all debts, including a mortgage and car payments, before retiring. Doing so can provide more financial flexibility and make it easier to manage unforeseen expenses, such as those incurred due to health problems.

Seniors must also consider their retirement living expenses. It's clear that a sizable nest egg is a necessity for anyone hoping to live comfortably in retirement, but the tricky part is figuring out just how big that nest egg must be. Individuals can speak with a financial adviser and discuss what their retirement living expenses will be. Conventional wisdom based on the Consumer Price Index suggests individuals will need to replace between 70% and 80% of their pre-retirement income after concluding their career. But even that figure is not set in stone, as rising inflation, such as the rapid spike experienced in 2022, can quickly put retirees in financial jeopardy. By estimating the expenses they might have in retirement, individuals can begin to see how close to or far away from retirement they may be. They should budget for inflation so any spike in living expenses can be easier to manage.

Many individuals recognize that there's no perfect time to retire, but a few simple strategies can help people make the best decision possible.