Have You Asked These Retirement Questions?Submitted by Total Clarity Wealth Management, Inc. on July 6th, 2021
There are many components to retirement planning that can cause many questions to arise. A few crucial questions can make or break your retirement plan. Continue reading to see if you have asked yourself these retirement questions.
How much will I spend in retirement?
To decide how much you need to save, you need to know how much you are going to be spending. To calculate your spending in retirement, you need to consider your expenses, lifestyle, spending habits, inflation, and life expectancy. You may choose to pick up hobbies or travel more than you did before. Develop a retirement budget based on your current budget so you can see what you will need to save.
How long will my retirement savings last?
There are several pieces to take into consideration when deciding how long your retirement savings will last. These pieces include how long you will live, how much you will speed, the rate of return on your investments, your medical expenses, and your tax rate. Based on these, you can develop an estimate on how many years your savings will last you.
How will I pay for my healthcare expenses?
You receive Medicare coverage at the age of 65 but it will only cover about half of your healthcare expenses in retirement. On average, you can expect to spend $5,000 to $10,000 per year on out-of-pocket costs per person.
When should I start taking Social Security?
You can begin taking Social Security at 62 years old and the latest you can start taking benefits is 70 years old. If you can put off receiving these benefits until the age of 70, you will receive thousands of dollars more. Your decision is based on your situation. Consider other income you will receive, inflations, and whether you plan to continue working or not.
How do I retire?
After spending decades planning and saving for retirement, you eventually hit the point where you will retire but no one ever discusses how you go about retiring. As for leaving your job, it normally involves filling out paperwork with human resources. For receiving payments from your retirement savings accounts, you should sit down with a financial professional to determine your payment amount and payment schedule.
Getting the assistance of a financial advisor can be helpful for the retirement planning process. A financial advisor can answer your retirement questions with advice that is tailored to your specific situation. Here at Total Clarity Wealth Management, we can answer all of your retirement questions. Give us a call at 630-762-9352 to set up a complimentary, no obligation consultation.