4 Questions Pre-Retirees Are Asking

When it comes to your retirement, feeling prepared is something that keeps many up at night. Have you saved enough? What if you have unexpected expenses? What if the market is volatile during the early years of retirement? Should I delay my retirement date? These are some of the questions people getting ready to retire are asking. To have your most successful retirement, you should consider the following.

1. Have I saved enough?

How much you need to save for retirement is different for everyone. It depends on your current income level, your retirement lifestyle, and your income sources (retirement plans such as 401(k)s and IRAs, social security, pension, etc.). However, during the past few years, higher inflation and bear markets in 2020 and 2022 led an estimated 41% of Americans to stop putting money into retirement accounts such as 401(k)s and IRAs, while nearly a third (32%) withdrew money from their accounts to cover the higher cost of living.¹

Knowing how much you spend now is critical. Only 32% of U.S. households prepare a monthly budget.² Setting up a retirement budget that outlines income sources and expenses will give you an idea of how much you’ll need month-to-month or annually.

2. Expect the Unexpected.

Major housing repairs, uncovered health care costs, long-term care needs, or the death of a spouse are all big events that can have a negative impact on your retirement savings.³ Having a plan for unexpected expenses allows peace of mind that you’ll be able to cover the expenses without having to drain your life savings. A trusted financial expert can guide you to different options and opportunities to help you plan for the unexpected during retirement.

3. Market Ups and Downs.

As we get older, our investments have less time to make up for losses when the market has downs. Leaving your investments fully exposed to stock market risk may be less of a good idea as you get closer to retirement. Planning ahead can go a long way toward helping you protect plan for market volatility. Regularly assess your risk tolerance and how it relates to your retirement timeline.

4. Postponing Retirement.

Many people are considering retiring later than anticipated. As in prior years, there is a big gap between when active workers expect to retire and when they actually retire. Half (50%) of pre-retirees and retired Americans are considering delaying or coming out of retirement, according to a survey from F&G Annuities & Life, Inc.⁴ Sure, delaying retirement may give you more time to save or invest, or to maximize your Social Security benefits. But, more than anything, knowing you can trust your financial plan to get you to retirement, and then through retirement, will allow peace of mind when setting your retirement date.

When you work with a retirement planner, they can help you create a financial plan for the future that takes into account your retirement lifestyle goals, budget, preparations for unexpected circumstances, evaluating your risk tolerance, and setting a retirement date. Give the advisor team at Brogan Financial a call for a complimentary review of your retirement goals and finances.