It goes without saying that retirement is a significant life change. Equally obvious is the fact that many Boomers deny the reality of retirement, working as long as they are able. But at some point, most of us realize that maintaining the same pace is an impossibility and, at the very least, we accept the need to transition to something different. That something may not look like traditional retirement at all, but chances are it doesn't look like our previous career-focused lifestyle either.
There are so many questions surrounding retirement -- the next phase, reinvention, second act, or however you define it -- that it can be bewildering just to know the right questions to ask. Writing for The Balance, senior financial planner Scott Spann seems to have identified five of the most important questions to answer:
- What do you look forward to doing the most in retirement?
- How long do you need your money to last?
- How much retirement savings will you actually need?
- How much should you be saving today?
- How much can you afford to spend yearly once retired?
As you can see, the first question is really qualitative while the next four are quantitative. Spann offers some wise commentary about how to answer each of these questions, so the article is worth reading here: https://www.thebalance.com/five-important-retirement-questions-you-need-to-answer-4025465?
None of the questions are necessarily easy to answer; in fact, all of them probably require a great deal of thought, some serious self-reflection, conversations with your significant other, and counsel with a financial adviser. But contemplating retirement without adequately answering these questions is fraught with risk. If you've had a successful life, you know by now that planning ahead is an essential part of building a secure future. It should be no different with retirement: First ask the right questions -- and then be sure you answer them to the best of your ability.
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