Retirement Planning

3 Finance Questions to Ask Before You Retire

As you prepare for retirement, are you asking all the right questions? This article asks and answers three important questions you may need to consider.

Am I Financially Ready to Retire?

Retirement planning can feel like a complex process. And the closer you get to walking away from work, the more financial questions and concerns you'll likely have. That's why it's important to develop a retirement strategy that works for your specific needs, and considers your individual goals.

If your retirement is just around the corner, you should ask yourself these three questions so that you can be better prepared financially for the next (and perhaps the best) stage of your life.

When do you plan to retire?

Do you plan on working in your 60s, 70s, or beyond? Or are you planning on taking an early retirement? Naturally, if you delay retirement, you'll have more income generating years, as well as fewer years of having to withdraw money from your retirement accounts. On the flipside, an early retirement means making sure you have enough money so that you can enjoy doing the things you like and have planned for.

Do you have enough money to last you another 20 or 30 plus years?

Longer life expectancies could mean a retirement that lasts two or even three decades. This means you may need to save much more than your parents ever did. If you have concerns about not having enough money saved, you may want to review your retirement savings plan to see where you can bolster your savings while you're still working. If you're not sure how, consult with a qualified financial professional who may be able to help get you on track.

What's your Social Security strategy?

For 75 years, Social Security benefits have been the rock that Americans have relied on to supplement their income in retirement. In fact, Social Security replaces nearly 40 percent of an average wage earner's income during retirement. But because Social Security doesn't replace all of your income, you need to make sure you maximize your benefits. To do this, however, you need to be strategic about when you apply. For example, if you take your benefits early at age 62, you'll receive a reduced benefit but will receive payouts for a longer period of time. In contrast, waiting to take your benefits until you reach your full retirement age means a bigger payout, but for fewer years. To get a sense of the best option for you, consult with a qualified financial professional. If you want to get an estimate what your benefits may be by either taking them early or waiting, visit the SSA's website.

Still have more questions about planning for retirement? For more information on retirement planning and saving for retirement, visit the Protective Learning Center.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Retirement Planning And Your Savings

If retirement is growing closer, you may find that your retirement plan isn't as ironclad as you might have thought. Be better prepared and ask yourself these three financial retirement questions in order to fine-tune your retirement strategy. For more information, visit the Protective Life Learning Center.

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