Two Questions to Answer About Your Retirement

Your expected retirement date represents and “end” of sorts. Yes, it is the end of your career. But it is also the beginning of the rest of your life, and a time to live out the dreams for which you spent many decades planning.

What do you want to do in retirement? But your retirement dreams might be quite different from your co-workers’, neighbors’, and friends’ ideas of the ideal retirement. That is one of the primary reasons that retirement planning is never a “one size fits all” approach, and everyone will set and reach somewhat different goals before they retire.

For example, one poll on retirement expectations found that soon-to-be retirees plan to…

• Spend more time with friends and family (57 percent)
• Travel (67 percent)
• Pursue hobbies, either established ones or new interests (48 percent)
• Engage in volunteer efforts of some type (26 percent)
• Continue working part-time, consulting, or starting a second career (30 percent)

Notice anything? Some goals are common, while others are less so, but it is likely that each person polled had a very different idea of how their post-retirement life would look. But of course, one common theme runs through most retirement plans: With the exception of working in some capacity, all of these goals cost money.

After you’ve decided what you will do, we must answer the next question: When will you retire? The answer varies greatly; some people want, or need to retire in their early sixties. Others happily work until age 70, 75, or even longer! Plans should always be flexible, though, because unforeseen events can force a change in circumstances.

Longevity is a primary factor in retirement planning. While none of us can predict the future with 100 percent accuracy, we can gain insight by considering our parents’ health and longevity.

After putting together the pieces of this puzzle, we can arrive at a savings goal, income strategy, and timeline for your retirement. Let’s schedule a meeting to discuss your retirement dreams, and then we can proceed from there.

Source: TransAmerica Center for Retirement Studies, 2019