I’m 58 years old, single and simply over the daily grind. I've got $970,000 stashed in my 401(k) — can I retire today?

Get a clear picture of your financial situation

Deciding if it’s possible for you to retire will depend on whether you have a clear idea of how you’ll cover your expenses if you stop working. Since you can’t claim Social Security benefits just yet, the $970,000 in your 401(k) needs to be truly enough to cover all of your expenses until you can.

Many retirees use a common retirement budgeting tactic, the 4% rule, to ensure there’s enough money from their retirement accounts when making withdrawals, even when adjusted for inflation. With $970,000 in a 401(k), you can typically withdraw $38,800 each year before taxes. Of course, your retirement income may be higher if you have more assets held in other retirement accounts.

Look at your spending now and whether this will change once you retire. Aside from costs like food, clothing and transportation, take a look at what you owe as well.

For example, do you still have personal loans you need to pay off? Will it be a few years before you no longer have a mortgage? If so, you need to factor in your monthly payments in your retirement budget.

Retiring before 65 years old also means you’ll have to fund your own health care costs. Medicare won’t kick in until then, and your options could include COBRA (if you had a qualifying employer-provided health care plan) or other private insurance options.

Depending on the plan, you could end up paying several hundred to around $1,000 per month in premiums. Costs can go up for couples or families.

Compare your spending with your retirement income — is it enough to live on? Do you have other income sources like investments from brokerage accounts or pensions (assuming you can tap into them right now)?

If not, you may need to hold off until you have more in your nest egg. Or perhaps when you can start to claim Social Security benefits if you’ll need to rely on that extra boost to afford your retirement expenses.

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Making early retirement work for you

Still want to retire early? Here’s where getting crystal clear comes in handy: if you’re not clear on your income and expenses, now and years in the future, you could be at risk of running out of money.

As in, it’s still possible to make it work if you’re willing to get creative with how you can afford it.

Say you estimate your retirement expenses will be $50,000 each year and your only income source is your 401(k) until you decide to claim Social Security benefits when you’re 65. In this case, you’ll need to cover around a $12,000 shortfall (it’ll depend on how much you need to pay in taxes) for the next seven years.

Instead of leaving your career entirely, see if you can work part-time hours or freelance for your current employer. Side hustles or gig work is another way to fill in any income gaps. Your skills may easily lend themselves to a side business idea. That way, you can free up some time to pursue your ideal retirement lifestyle while earning income.

Another option is to find ways to drastically reduce your expenses like downsizing to a smaller home, relocating to a lower cost of living area, or selling one of your cars. Giving yourself that financial breathing room can take a lot of pressure off finding part-time work, or feeling you have to wait longer before retirement is on the horizon.