Before you can plan for retirement, it helps to have some idea of what you’re planning for.
There is no single version of a successful retirement. Some people dream of traveling. Others want to spend more time with grandchildren, volunteer, pursue hobbies, move closer to family or simply enjoy a slower pace of life.
And for some people, retirement doesn’t mean completely leaving the workforce. It might mean consulting, working part time or gradually transitioning away from a business or career.
Think beyond the date you hope to retire and start picturing an ordinary Tuesday during retirement.
Where are you living? How are you spending your time? What matters most to you?
Those answers can provide important context for the financial decisions that come next.
2. Where Will My Retirement Income Come From?
During your working years, income may feel relatively straightforward: you work, receive a paycheck and use that income to support your lifestyle.
Retirement can look very different.
Depending on your individual circumstances, retirement income could come from several sources, including Social Security, employer-sponsored retirement plans, IRAs, pensions, personal savings, investments or other assets.
Understanding what resources you have—and how they may work together—can be an important part of preparing for retirement.
Rather than viewing each account individually, consider the bigger picture: How might your available resources support the life you want to live?
3. Have I Thought About What My Spending May Look Like?
Retirement doesn't necessarily mean your expenses suddenly become lower.
Some costs associated with working may decrease, while other expenses could increase. Travel, hobbies, home projects, helping family members and healthcare can all affect what retirement spending looks like.
It can be helpful to think about both your essential expenses and the things you simply want to have room for.
After all, retirement planning isn't only about covering bills. It's also about considering the lifestyle you've worked hard to reach.
Your anticipated spending doesn't need to be predicted down to the dollar, but having a realistic picture of your priorities can make retirement conversations much more meaningful.
4. How Does Healthcare Fit Into My Retirement Plan?
Healthcare can be an important consideration when preparing for retirement, particularly for anyone considering leaving the workforce before becoming eligible for Medicare.
Even after Medicare eligibility begins, healthcare planning doesn't disappear. Premiums, supplemental coverage, prescription medications and potential long-term care needs can all become part of the broader conversation.
As retirement approaches, consider learning more about the healthcare options that may be available to you and how potential healthcare expenses fit into your overall financial picture.
Healthcare decisions are highly individual, so your specific needs and circumstances should be evaluated with the appropriate professionals and resources.
5. What Happens If Life Doesn't Go Exactly According to Plan?
A retirement plan may look great on paper, but life rarely follows a perfectly predictable path.
Markets change. Expenses change. Families change. Health circumstances can change. Sometimes retirement happens earlier—or later—than originally expected.
That doesn't mean planning is pointless. In many ways, it means the opposite.
A financial strategy can be reviewed as circumstances evolve. Rather than thinking of retirement planning as something you complete once and put on a shelf, consider it an ongoing process that can change along with your life.
Building some flexibility into your thinking can help you prepare for more than one possible version of the future.
6. What Do I Want My Money to Accomplish Beyond Retirement?
For many people, retirement planning eventually becomes about more than their own lifestyle.
You may begin thinking about helping children or grandchildren, charitable giving, your estate, a family business or the legacy you hope to leave behind.
Those conversations can involve financial, estate, tax and legal considerations, depending on your circumstances.
Thinking about these priorities before they become urgent can give you an opportunity to communicate your wishes and work with the appropriate professionals as you consider how your financial resources fit into the bigger picture.
Retirement Planning Is Personal
There isn't a universal retirement age, account balance or strategy that's right for everyone.
One person may envision retiring at 60 and traveling extensively. Another may enjoy working well into their 70s. A business owner may gradually transition responsibilities over several years. Someone else may change plans because of family, health or an unexpected opportunity.
That's why retirement planning should begin with more than numbers.
It should begin with you.
At Muehling Financial, we work with individuals and families in Lincoln, Beatrice and surrounding Nebraska communities as they prepare for retirement and navigate different stages of their financial lives.
If retirement is beginning to feel less like a distant idea and more like an approaching reality, it may be a good time to start the conversation.
Ready to talk about what retirement could look like for you? Contact Muehling Financial to schedule a consultation.
This material is provided for general informational and educational purposes only and is not intended as individualized investment, tax, legal or healthcare advice. Individual circumstances vary. Consult the appropriate financial, tax, legal or healthcare professional regarding your specific situation.