Are You Retirement Ready?

Are You Retirement Ready?

Are You Retirement Ready
Are You Retirement Ready

Retirement can be one of life’s biggest transitions, and being prepared can mean the difference between comfort and uncertainty. But how do you know if you’re truly ready?
Know Your Number

Start by estimating how much money you’ll need annually in retirement. A common rule of thumb is 70 to 80 percent of your pre-retirement income. Multiply that by the number of years you expect to be retired to get a rough idea of your retirement goal.1

Evaluate Your Savings

Check your current savings in retirement accounts like 401(k)s, IRAs, and other investments. Are you on track to meet your target? Online retirement calculators or a financial advisor can help project your future income based on your current savings.2

Consider Your Expenses

Think about housing, healthcare, insurance, travel, and everyday living costs. While some expenses may decrease, others, such as medical care, might increase over time.3

Plan for Healthcare
Medicare does not cover everything. You may need supplemental insurance or a health savings account if you’re still working.4

Think Beyond Finances
Being retirement ready also means having a plan for how you will spend your time. Consider hobbies, volunteering, travel, or part-time work to stay active and fulfilled.5

 

Final Thought

The earlier you begin planning, the more options you will potentially have. Review your financial and lifestyle plans regularly and adjust as needed. Retirement is not just an end. It is a new beginning. Make sure you are ready to enjoy it.

References

  1. Forbes. (2020, July 9). This retirement rule of thumb won’t work for most people. Forbes. https://www.forbes.com/sites/stevevernon/2020/07/09/this-retirement-rule-of-thumb-wont-work-for-most-people

  2. Northwestern Mutual. (2024, July 9). Americans with a financial advisor expect to retire two years earlier according to Northwestern Mutual’s Planning & Progress Study. PR Newswire. https://news.northwesternmutual.com/2024-07-09-Americans-with-a-financial-advisor-expect-to-retire-two-years-earlier-according-to-Northwestern-Mutuals-Planning-Progress-Study
  3. Foster, A. C. (2016, March). A closer look at spending patterns of older Americans. Beyond the Numbers: Prices & Spending, 5(4). U.S. Bureau of Labor Statistics. https://www.bls.gov/opub/btn/volume-5/spending-patterns-of-older-americans.htm bls.gov

  4. Verywell Health. (2024, April 1). Can you have a health savings account (HSA) and Medicare? Healthline. https://www.healthline.com/health/medicare/hsa-and-medicare

  5. WebMD. (2023, July 28). Beyond finances: Other types of retirement planning. WebMD. https://www.webmd.com/healthy-aging/features/other-retirement-planning

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