Few people want to work forever, and if you imagine there will be a time you want to stop heading into the office or your workplace, you need to start planning now. As you plan for your golden years, there are a few questions you must answer.
What Am I Planning to Do, and Do I Have the Cash to Do It?
Consider what your ideal retirement will look like. Do you want to travel or stay where you are? What activities will you want to pursue? It’s great to have dreams to look forward to, and knowing what you plan on doing can help you plan financially, too. If your hobbies include buying an expensive boat, now’s the time to plan for that expense.
Will I Be Moving?
If you’ll be selling your home or downsizing from a large house to a smaller home, you’ll likely be getting income or savings from that transaction. If you plan on moving to another part of the country or to another country, you need to consider moving costs, as well as a different cost of living.
Did I Make an Estate Plan?
An estate plan is important because it lets you determine how decisions will be made when you’re no longer able to make them. Your estate plan can include a will, so your property is distributed according to your wishes. It can also include a power of attorney, so someone can take care of health, financial and legal decisions if you ever become unable to do so. An estate plan can also include trusts and other solutions, as well, depending on your situation.
At What Age Can I Retire?
When considering when you want to retire, consider your career and retirement plans to determine how much time you’ll need for both. Also, consider how much money you have for retirement, which can determine whether you need to work longer or can retire early. Money Help Center has a calculator to help you determine how much money you need to retire, so you can see how much you have to save.
What Is My Life Expectancy and Health Like?
How long will your retirement savings last? A lot has to do with how long you’ll need to live off the savings and how good your health is. If you have chronic conditions, you need to consider medical costs when planning your retirement. If you come from a family of long-lived ancestors with no history of serious illness, you may need to plan on living off your retirement for an extended period of time.
Do I Plan on Bringing in Any Income After Retirement?
Some retirees decide to take on part-time work or pursue a paying hobby or decide to open a business. If you plan on making some money after retirement, this will affect how much you need to spend.
What Is My Lifestyle Like Now?
How much are you spending? Your current spending habits can determine how much you should put aside for retirement and offer a clue as to how much you’ll need after retirement. If you have lots of debt right now, for example, you’ll want to pay that off before retiring.
If you’re asking the big questions about retirement, check out the unbiased calculators at Money Help Center. They can help you budget, choose retirement savings plans, figure out how much you need for your golden years and more.