Retirement may look different than you think


When you ask someone when they would like to retire, one common response is “I’m never going to retire!”  They go on to explain that this is because they love their job and cannot imagine not coming to work each day, or that their finances and savings will not allow retirement.

What usually is not considered in those responses is the “what if” component.  Specifically, what if plans just don’t work out the way we picture retirement?  Many times, circumstances beyond our control such as a health crisis, or the needs of other family members get in the way of these assumptions and plans.

So what can you do to begin identifying whether or not you could retire, if you HAD to include:

  1. Create a budget - write down your necessary and discretionary expenses so you know how much youwill need to live on.
  2. Take inventory of any income resources such as Social Security and pensions that will help cover the expenses identified in the budget.
  3. Total your financial assets that will be available to supplement your income resources.

Having a plan for when you WANT to retire is good, but having a back-up plan for if you NEED to retire is vital.  Having a healthy saving/emergency fund, aggressively saving for retirement, obtaining life insurance and long term care insurance are all smart steps to consider.

Deborah E. Pajak, CFP®, ChFC®, CLTC, CDFA™ is a registered representative of and offers securities, investment advisory, and financial planning services through MML Investors Services, LLC, member SIPC. 5001 Louise Dr. Suite 300, Mechanicsburg, PA 17055 (717) 791-3300. CRN#202005-231161