Of all the dreams and decisions that go into planning your ideal retirement, perhaps the most difficult is deciding when to actually take the leap. Are you ready to retire in the next one to two years, or are there other factors you need to consider first?

In this week’s Better Money Boston with WCVB Channel 5, David Shapiro shares three essential questions to ask yourself before embarking on this next chapter of life.

Have You Paid Off Debt?

First and foremost, an income plan is key to pinpointing your readiness for retirement. It involves not only determining your sources of income but also understanding your expenses — and debt can be a huge part of that. But not all debt is created equal: low-interest mortgage debt at 1.9% is far less urgent than high-interest credit card debt at 19%.

Whether you use the snowball method (starting with the smallest balances) or the avalanche method (tackling the highest interest rates first), the goal is to reduce as much debt as possible, so you can free up income for the things that really matter.

Do You Have Enough Income?

Converting your retirement savings into a reliable income stream is easier said than done. It takes careful planning and strategy to turn your nest egg into a steady paycheck for the rest of your life. This is where your income plan comes in again.

Start by outlining your long-term needs and goals, then take inventory of your income sources. Do you have Social Security, pensions, 401(k)s, IRAs, or other investment accounts to draw from? If you discover an income shortfall, how will you bridge the gap? What tax strategies should you implement to get the most out of your money? Your answers to these questions can help clarify how close you are to being truly ready for retirement.

Are You No Longer Fulfilled in Your Work?

Choosing when to retire is more than just a financial decision — you also need to be mentally and emotionally prepared. One important aspect is leaving the workforce. Ask yourself: Do you still feel fulfilled in your current job? Would you prefer to reduce your hours, or even switch professions?

Or, if you realize you’re ready to leave that part of your life behind entirely, think about how you want to spend your time in retirement. Are there passions or hobbies you’ve always wanted to explore? Before setting a retirement date, consider discussing these options with your loved ones.