Planning retirement? Whether you’re anticipating retirement, just about to retire or already have retired, developing a plan is key for your years after work.
Answer these questions courtesy of Forbes to make planning retirement as successful as possible.
– How long do you plan to retire? Essentially, this entails estimating your life expectancy to be financially prepared as you take on retirement. Someone with a life expectancy of 10 years will have a very different plan than someone who has a life expectancy of 35 years, for example. If you’re married or living with a partner, it’s also important to keep their life expectancy in mind, as well, since finances will change when they pass away.
– When will you be ready to retire? Are you prepared to leave behind your workplace and sense of purpose associated with your job? Are you ready to spend more time on other activities? These are essential questions to answer in planning retirement and determining when you’re ready to retire.
– What do you want to do in retirement? Answering this question will give you a better sense of how much you’ll spend during retirement. Explore the type of lifestyle you desire in retirement, such as where you’ll live, whether you’ll travel and what activities you may plan. Also, consider that you may spend more on medical and long-term care expenses as you get older as opposed to events and outings.
– When will you be able to retire? Unlike when you’re ready to retire, when you’re able to retire depends on how much money you have for retirement. How does your spending estimate compare to your sources of retirement funds? Make sure you have enough for your fixed, basic expenses.
Planning retirement may involve much more than the answers to these questions. But at the very least, they will provide a basis for your overall retirement plan.