With retirement in your sights, many questions are bound to come to mind. While lifestyle and personal factors are always going to be the two biggest variables when it comes to planning out your retirement, below I’d like to discuss three retirement questions that everyone must figure out before that big day comes.
These are vital to long-term success and may take awhile to figure out. Start now and you’ll be much farther ahead than any couples who try to wing it or retire without answering these questions up front.
#1 – What Are Your Biggest, Overall Goals?
Let’s start out with the number one, most important questions: what are your goals? Everyone has different goals, so you owe it to yourself to figure them out upfront, before you begin to plan on how you’re going to accomplish them. Retirement funds and savings plans are bound to fail if you haven’t figured out what you’re doing with them.
Once you figure out your dream, you’ll be that much closer to accomplishing it with the right plan.
#2 – Do You Actually Have the Cash?
Goals, dreams and ambitions are wonderful, but when it comes down to it, do you have the actual cash to support it? Rather than living on dreams and hope, rooting your goals in reality is truly the next most beneficial step.
Some retirement planners suggest that in order to maintain your current lifestyle and meet your goals, you’ll need 60-80% of your pre-retirement income annually. But, when it comes down to it, these are just estimates.
Of course, it’s always possible that you may need to adjust your goals to fit your cash, or the opposite may be true. Retirement means different things to different families and individuals. Maybe a part-time hobby job would fit you best in the coming years, something that could provide spending money and enjoyment at the same time.
#3 – Should You Move or Relocate?
Now, again, these are all very personal questions, but thinking about where you should live after retiring is another one of the big three. There are dozens of factors that come into play when moving comes into mind, like pricing, location and convenience.
Most working class individuals live in more urban, densely populated areas that tend to be more expensive to rent or buy in. However, if most of your family is in one of these areas, you’ll want to keep location proximity in mind as well and come up with a personal plan that fits for both you, your partner and your family.
This is by no means the be all, end all list of retirement questions, but it is the biggest three that you need to answer upfront when planning out your retirement in our opinion. If you’re facing an early retirement situation, researching a substantially equal periodic payment plan can help alleviate much of the associated penalties and costs. We’re happy to provide you with as much information to help you make an informed decision.