Retirement Planning for Your Comfortable Future

Are you sure?  

The pandemic has been long and hard on many families, with some losing loved ones and kids longing to return to school and be with their friends. Yet, it has also prompted us to reflect.  

You may have heard of the "great resignation." Many employees, now working from home, are finding that they enjoy it and feel more productive. They are beginning to question the necessity of returning to the office, leading to a changing mindset in both employees and business owners. This shift also applies to perspectives on retirement.  

People who experienced lockdowns, as well as those affected by COVID-19, have started realizing that there is more to life. It might be time to savor and experience the things they truly want to do. Achieving a comfortable retirement can be fulfilling, especially when one has worked in a field they enjoyed, created jobs for others, and addressed a societal need. We save for retirement, fantasizing about that day in the distant future when we can finally retire.  

However, retirement can be a great idea, yet without proper financial planning, it can lead to disastrous outcomes. Let me explain.  

Recently, friends and I engaged in a discussion about retirement. We talked about our aspirations and shared what we need for a comfortable retirement. One friend mentioned he would retire when asked to return to the office. Another, let’s call him Jim, indicated that he was nearing the 70% threshold for retirement income relative to his current earnings.  

As our conversation continued, we explored what individuals might do in retirement. Activities and projects that had been put on hold due to time constraints now became a topic of discussion. Some friends looked intrigued, while others seemed envious. It was telling to see who had genuinely contemplated their retirement goals versus those who were merely dreaming.  

I was curious about those who appeared to have spent time reflecting on their future. So, I posed the question: Is your goal to achieve 70% of your income in retirement? Jim replied, “Yes. For a comfortable retirement, I need at least 70% of my current income.” My follow-up inquiry was how he determined that percentage.  

Jim looked at me as if he expected me to know. He mentioned he derived that figure from advertisements, conversations with friends, and articles in the newspaper. I then observed, without asking further questions to avoid annoying him, that it seemed everyone shared similar retirement goals.  

Clearly, we are often swayed by confusing information concerning what constitutes a comfortable retirement. Advertisements and so-called experts tend to lump everyone into the same category, providing only estimates on required amounts for retirement.  

Yet, retirement is not a one-size-fits-all journey. Each individual has different retirement goals, requiring varying levels of income. It’s crucial to collaborate with someone who listens to your specific retirement goals. I will ask the right questions to delve deeper into your aspirations. This information can then be integrated into a personalized financial planning strategy, addressing one of the most critical questions you may face.  

We often get caught up in the noise surrounding retirement. It's important to take a step back and envision what retirement looks like for YOU. Once you clarify that vision, we can determine the income needed to support that ideal retirement.