Questions to Ask Yourself Before Retirement

Retirement. It’s something that many people look forward to but that people often don’t adequately prepare for. This is unfortunate since not properly preparing for retirement can lead to a difficult and stressful retirement, which is the exact opposite of what most people want. In order to plan for retirement, though, you have to know what your retirement is going to look like, and you can often figure this out and adequately save by asking yourself a few simple questions.   

Question #1: What Do You Want to Do When You Retire?

How much money you’ll need in retirement will depend largely on what you plan to do in retirement. Think about whether you want to travel regularly, where you want to live, and how you plan to spend your time. Obviously, someone who wants to stay home and garden is going to need less to retire on than someone who wants to travel the world! Thus, come up with an idea of how you plan to spend your retirement years and then save an accurate amount to help you accomplish those goals.

Question #2: How Long Will My Retirement Last?

You have no idea how long you’ll be retired or how long you’ll live once you retire. No one can predict the future, but you can make a pretty accurate guess. Figure out your life expectancy by analyzing your overall health and your family history. If you have a realistic idea of your life expectancy, you can make sure that you’re saving enough money to actually get you through your entire retirement.

Question #3: Am I Preparing for Retirement Like I Should?

This last question requires you to be super honest with yourself. If you’re not, you could end up like the many other people out there who are not adequately prepared for retirement. Honestly, unless you’re saving around 10 to 20% of your income on a regular basis and have been for quite some time, you’re probably not doing enough. If you think you could be doing more to prepare for retirement, then start! Talk to a financial adviser to learn about good options for saving for retirement.

As you can see, retirement isn’t something that you can really do without a lot of thought, but if you do put the thought and effort it, it will be worth it because you should have a much better retirement experience when the time comes.