Financial Check-Up for Pre-Retirees

Questions to help you reach your goal of retirement.

According to a Fidelity Management and Research report in 2004, a retiree’s financial plan should yield an income stream of between 80–100 percent of pre-retirement income in order to live comfortably. The following questions will help you determine how close you are to that goal:

1. Determine your post-retirement lifestyle and associated expenses. Will you be traveling more or less? Eating out more or less? You will probably be spending more money on recreation. How do these changes compare to your current cost of living?

2. Determine your specific retirement benefits. These include Social Security, pensions, IRA’s, 401K plans, investments, annuities, and more. There have been a number of changes over the past few years, particularly as they relate to health care. Know what you are entitled to and what you can depend upon.

3. Create a plan for health care and long-term care coverage and determine costs associated with these areas. Don’t forget about the high cost of prescription drugs.

4. Consider how any emergency expenses will be handled and prepare a contingency plan to handle this.

5. Look at your own family. Are you likely to be more or less financially responsible for other family members during your retirement years?

© The Odyssey Group, used with permission. www.theodysseygroup.net