Retirement isn’t just an age or a date circled on the calendar—it’s the beginning of a new chapter. For some, it means travel and adventure; for others, it’s about slowing down, pursuing passions, or spending time with family. Whatever your vision, the key is having a plan that not only funds your lifestyle but also adapts as life unfolds.
Lifestyle & Goal
1. What does your ideal retirement look like?
Before focusing on when to retire, think about how you want to spend your time. Will you live close to family, travel regularly, or take on new projects? Your lifestyle vision is the starting point for estimating your income needs.
2. What are your top retirement goals?
Be as specific as possible. Do you want to stop working completely, reduce hours, or start a second career? Knowing your goals allows you and your advisor to build a realistic savings and withdrawal strategy.
3. When is the right time for you to retire?
Your “full retirement age” for Social Security is likely between 66 and 67, but the best timing is unique to you. Health, lifestyle preferences, and financial readiness all play a role. Some people ease into retirement part-time, while others set a firm date and step away entirely.
4. Is early retirement an option?
Retiring before Medicare eligibility at 65 can mean covering your own health insurance and living on reduced Social Security benefits. If early retirement is your goal, run the numbers carefully to see if your savings and income streams can sustain a potentially longer retirement.
Finances & Expenses
5. How much will you need to save?
There’s no magic number—it depends on your expenses, health care needs, and income sources. A common starting point that could be used is the “4% rule,” which helps estimate how much you’re able to withdraw each year without depleting your savings too quickly. Be sure to factor in inflation, market performance, and longevity.
6. What will your expenses be?
List your current monthly costs and adjust for lifestyle changes in retirement. Don’t forget to include occasional big-ticket items like travel, home updates, gifts, and potential long-term care. Also consider how inflation could increase expenses over the decades.
7. How will you handle health care costs?
Beyond insurance premiums, plan for deductibles, prescriptions, and possible long-term care. Missing Medicare enrollment deadlines can result in costly penalties, so it’s important to have a timeline. Consider whether supplemental coverage or a health savings account (HSA) could play a role in your strategy.
8. Will your income cover your needs?
Retirement income often comes from multiple sources: Social Security, pensions, IRAs, 401(k) or 403(b) plans, and personal investments. Coordinating these sources into a reliable, tax-efficient income stream is key to maintaining your lifestyle.
Timing & Strategy
9. When should you claim Social Security?
You can start benefits as early as 62, but your monthly amount increases for each month you wait until age 70. The right choice depends on your health, income needs, and family circumstances. Sometimes the best strategy is to delay for higher payments; other times, earlier access makes sense.
10. Do you have a withdrawal strategy?
The order in which you draw from accounts matters. Strategic withdrawals—from taxable, tax-deferred, and tax-free accounts—can potentially lower your lifetime tax bill and extend the life of your savings. Required minimum distributions (RMDs) also need to be planned for.
11. How will taxes affect your retirement?
Without planning, you may pay more than necessary. Thoughtful withdrawal sequencing and tax-smart strategies may help you keep more of what you’ve worked hard to save.
Support & Guidance
12. Do you have a trusted advisor?
Retirement planning isn’t just financial—it’s personal. Working with a fiduciary advisor like FCT means having someone in your corner, focused on your best interests, ready to adapt as life changes, and committed to the future you envision.
Start Your Planning Today
Retirement is a journey, and the best time to prepare is now. Whether you’re a few years away or already retired, First Community Trust can help you create a plan that supports your goals, adapts as life changes, and gives you confidence in the future.