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6 Questions You Need to Ask When Planning For Retirement

When planning for retirement, it's best to be prepared for anything. These tips will help you create a solid savings plan for your future.

Plan on Retiring One Day? Ask Yourself This. . . 

1) How much money will I need?   

According to the CDC, the average life expectancy for U.S. Citizens is 78.8 years. With today’s advancements, people are living longer in their retirement years. Experts say you’ll need between 55% and 80% of your pre-retirement income to live comfortably in retirement. You’ll need to budget for costs related to your health conditions, travel expenses, and frequent hobbies. Make sure to include inflation and an emergency fund in your plans.  

1. Source: Life Expectancy, CDC, (2019). 

2. Source: How much money should I save each year for retirement? Fidelity. (2020). 

2) What lifestyle changes will I make in retirement?  

Will you want to move to warmer weather in retirement? Start a new hobby? Are you considering getting a new job? Your lifestyle changes will help determine how long you will need to continue working.

Delaying retirement by only a few years can help your savings to accrue longer. You could also receive health insurance in another job to help you save even more.            

3) Do I understand my Social Security benefits?   

Social Security is a tax that provides benefits to people, including retirement benefits. Retirement beneficiaries on average receive 40% of their pre-retirement income from Social Security. Reduced retirement benefits begin at age 62. The full retirement age is 67, but you can increase your benefits if you were to delay up to age 70.  

3. Source: Learn About Social Security, Social Security Administration,  (2021)

4) How are my current investments performing?  

You should plan to have enough savings by retirement to withdraw about 5% each year. According to Fidelity, a retired couple age 65 may need $300,000 saved to cover medical costs throughout retirement.Understand how to maximize your investments such as a 401(k), IRA, or company pension. Continue tracking your savings and assets to ensure you’re on the right path to reach your goals.  

4. Source: How to plan for rising health care costs? Fidelity. (2021, May 6).      

5) Are my retirement documents organized?

Having an organized system will save you time and reduce stress during retirement planning. Save your documents safely in a digital folder or physical binder based on your preferences. When a document needs revisions, take a few moments to add the updated version to your folder/binder. Keeping your information current and accessible provides valuable convenience and peace of mind.

6) Are my other policies current?   

While preparing for retirement, it’s important your insurance policies reflect your goals. Contact your agent to review new risks and update your policies to protect your future.

Date Posted: August 19, 2021

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