Are you ready for retirement?

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We have been talking about the afterlife in our church Sunday School class lately. Our teacher has advertised it as something we tend to avoid talking about, even in a church setting, but much more in life.

Why?

Many folks are clearly ready and have confidence in their own readiness. Some are not and need to be coached. Others show little interest or are unaware, which to me is sorrowful.

Our own eventual retirement from work is a similar topic. Like the afterlife, it looms larger the closer we get to it. We may approach it with a sense of dread due to our lack of planning or we may view it with true excitement because we have made resources available for great times to come.

Are you ready for retirement? This may be an easy question, or it may be difficult for one to answer. Like the afterlife, if you do not respond with a resounding, "YES," I urge you to consider a few questions:

1. If you do not (or cannot) work for money, will you have enough in savings, Social Security or work-related retirement plans to pay for your necessary expenses, including your desired travel at the inflated prices which will inevitably occur?

2. If you do not (or cannot) work for money, will you be able to afford a healthcare crisis, including long-term care in addition to your expenses?

3. If you do not (or cannot) work for money, will you be able to leave the kind of legacy for your family that you desire?

If you answered "NO" to any of these questions, you are not alone. Consider the following facts:

One in five workers over the age of 50 do not have any money set aside for retirement. This is scary! It's also unhealthy for our country to have so many retirees relying solely on government programs. Such a statistic places an undue burden on our society. Therefore, I implore you to not be a part of this one in five!

Two out of three Americans worry more about running out of money than death. Scary also. See my opening paragraph. With proper planning, this should not be. I urge you to start planning now! About half of workers (46% in 2023) retired earlier than planned. Personal health issues were cited as the primary reason. I urge you to stress-test your retirement plan for a serious illness and make the necessary changes to related coverages and savings plans.

I routinely urge clients to create walls around their financial road maps. By that, I mean build barriers, utilizing financial products to reduce the risk that you are not able to achieve your tangible goals.

If you do not have money set aside and your company offers a retirement plan, do everything possi- ble to learn about how it works and participate to the maximum that you are able. Even if it is a small amount, pay yourself!

Also, visit with your CPA about the tax advantages of retirement contributions and plans. If you own your own business, there are some tax advantages available to starting up a new retirement plan.

Lastly, knowledge is essential in retirement. Now is the time to start the process of retirement planning.
Just like the afterlife, you need to be ready.