One of the most common fears people have as they approach retirement age is whether or not they’ll be able to retire comfortably based on their finances. If this is a worry you share, you’re certainly not alone—and the good news is that there are plenty of resources available to help you plan for your retirement.

As you approach your desired retirement age, there are a few key questions you can ask yourself that will help you get a better idea as to whether or not you’re ready to retire.

  1. Do I Have Any Remaining Debt?

Start by considering your current financial situation. Do you have any large outstanding debts or debts with high interest rates? If so, then you’ll ideally want to get these paid off before you retire; this will ensure that your retirement income can go as far as possible. After all, you don’t want to be spending your retirement money paying off debt. Make sure that your car loans, credit card debt, and (ideally) mortgages are paid off in-full before you retire.

  1. Have I Considered How My Lifestyle Might Change?

A lot of times, people plan to save for retirement based on their current lifestyle. However, it’s important to also consider how your lifestyle might change after you retire and how this could affect your spending. Many people find that the extra free time they have after they retire means they spend more on recreational activities to keep themselves entertained. You’ll also need to consider different costs of living if you plan on moving to a new area when you retire.

Take some time to carefully assess your current spending and do your best to take into consideration how your financial needs might change once you retire. Will you be spending more money on certain things and less on others? If so, you’ll want to make sure that your retirement savings reflects that.

  1. Do I Have My Healthcare Figured Out?

Another important aspect of planning for retirement that you won’t want to overlook is your healthcare situation. It’s no secret that health insurance can be costly, so you’ll want to make sure that not only can you afford healthcare after you retire, but that you have a specific plan picked out that you can implement right away.

When considering your post-retirement healthcare options, be sure to think about your current health needs. While it’s impossible to anticipate how your health needs will change down the road, you may want to think about purchasing a healthcare plan that will provide coverage for things like prescriptions and certain diagnostic tests. Make sure you also know exactly when and how you’ll need to go about enrolling in your healthcare plan, as well as how your spouse’s healthcare may be affected by your retirement plans.

  1. Do My Savings Meet or Exceed the “Rule of 25”?

While the best way to figure out how much you need to save for retirement is to consult with an experienced financial advisor, it can also be helpful to go by the so-called “rule of 25” when assessing your current retirement savings. This means that, generally speaking, you want to have at least 25 times the value of your yearly expenses saved for retirement.

Of course, this is not a hard-and-fast rule and it’s also not one that will apply uniformly to everyone. After all, post-retirement expenses can vary greatly from one person to the next. Still, it can be a good starting point to get a better idea as to whether or not you have enough saved.

Still Feeling Unsure?

Hopefully, taking the time to ask yourself these questions has helped to boost your confidence a little when it comes to your retirement plans. If you’re still feeling a little lost or uneasy about retirement, however, we recommend that you reach out for guidance. Schedule an appointment with your financial advisor for some pre-retirement planning and to review your needs.

At Fortified Retirement, we also offer pre-retirement financial planning workshop options that can be extremely helpful as you approach your desired retirement age. You can sign up for a free pre-retirement workshop to get additional guidance that will hopefully boost your confidence and help you figure out what additional steps you need to take to retire on time.

Your retirement will be here before you know it. In the meantime, take all the steps you can to ensure you’ll be able to live comfortably once you reach your golden years!

 

 

Licensed Insurance Professional. Provides general information about insurance and retirement-related products and services. These products and services may not be specific to a particular state. Information provided on this website, in seminars or through printed or other published materials are not intended as specific legal, accounting or investment advice to an individual’s particular situation. By providing your information to us, you agree that we may contact you regarding the potential sale of annuity and/or insurance products. Information provided by Licensed Insurance Professional does not necessarily represent that of the individual professionals presenting this information. All the information presented is believed to be accurate and is secured from reliable resources, however, no guarantee is made to the completeness or accuracy of the information presented. Any opinions expressed are those of the author and the material presented is for educational and informational purposes only and is not intended as legal, investment or tax-related advice.