10 Signs You’re Doing Well Financially When You're Over 55

Many Americans who hit the age of 55 start focusing on retirement and the future. After all, they want to see how their retirement savings stack up as they head into the last decade or so of regular work.

This can also be a great time to figure out whether you have prepared financially for the next stage of life. Here are 10 signs you are doing well financially when you are over the age of 55.

Find Out: 8 must-do things before 60 for a stress-free retirement

1. You have eliminated debt

Talk to someone who has carried debt into retirement, and they probably will share how tough it can be. Instead of enjoying retirement, their income goes toward trying to get out of debt .

If you have eliminated debt, it’s a great sign you are doing well financially. Paying off things like your car loan and mortgage can free up more money in retirement to direct toward living expenses and enjoying the next chapter in your life.

Do you owe the IRS over $10K? Ask this company to help you eliminate your late tax debt.

2. You have met with an advisor and set a retirement date

It can be fun to meet with a financial advisor to talk about your future and actually set a retirement date. For some people, setting that date can be the boost they need to get serious about retirement planning.

AARP suggests working with your advisor to create a written plan with retirement goals. Use that document to track your progress.

3. You have a solid emergency fund

An emergency fund is a useful tool to have at all stages of your adult life, but it is especially important as you pass age 55 and head toward retirement.

Once you are retired and living on a fixed income, an emergency fund can be a way to cover unexpected health care costs and other expenses that pop up.

If you are still working, now is a great time to put money aside in an emergency fund. Try to save up enough cash to cover expenses for at least six months.

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4. You have health insurance now and a plan for keeping it through age 65

Health care can be one of the biggest expenses in retirement. If you are 55 or older and have health insurance and a plan for keeping it after retirement, it’s another sign you are doing well financially.

If you haven’t considered health insurance options during retirement, it’s another area to discuss with your financial advisor or to research on your own. Once you turn 65, it’s likely you will be eligible to sign up for Medicare.

5. You have purchased other types of insurance

As you enter the last stage of your regular working life, it’s a great time to make sure your insurance coverage is sufficient.

For instance, look at your life insurance and disability insurance. If you have solid policies in place, it’s another great sign you are doing well financially at this stage in your life.

It’s also a good time to look at your homeowners insurance and car insurance and see if you need to make any tweaks there.

Finally, think about long-term care insurance and whether it makes sense to purchase a policy.

6. You have a plan for claiming Social Security benefits

You can start claiming Social Security benefits as early as 62, but there are pros and cons to doing so. That’s why it’s important to have a plan for when you will start claiming benefits.

Today, it’s probably easier than ever to plan this part of your retirement. You can start by creating a free account with the Social Security Administration and estimating your future benefits.

7. You have a big nest egg or other income streams

Having a solid nest egg and other income streams also indicates you are doing well financially after age 55.

You will probably find it difficult to live solely on Social Security in retirement. Having a big nest egg or income streams from a pension or part-time job can be a big help.

8. You have a good credit score

If you have done a solid job with your finances and have a good credit score, it’s another sign you are probably on firm financial footing as you head toward retirement.

With your good credit score, you can snag better interest rates on loans and credit cards. This can save you a good deal of money.

9. You have already retired

If you are around the age of 55, being already retired may be one of the single greatest signs you are doing well financially. Those who belong to this exclusive club likely have done something right over the years.

The work isn’t done, though. You still need to think and plan for the years ahead, including how you will pay for health care, emergencies, and insurance.

10. You feel great about your retirement plan

Here is an important question as you review your financial fitness: How do you feel about your retirement plan ?

If you feel great about it — and have it written down with specifics, including how you will pay for key expenses during your golden years — that’s another sign you are doing well. If you see an area or two for improvement, now may be the time to act.

Bottom line

Many retirees in the U.S. are struggling to deal with rising prices. As you make plans, keep in mind how inflation will impact your retirement finances.

Now may be the time to make some money moves as retirement approaches.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).