University Professors/Professionals

Retirement can be a great idea, but if you do not plan it, then it can be disastrous. Let me explain…

Friends and I were discussing retirement and the requirements to retire comfortably. One asked if he would be retiring when asked to return to the office. Another, let’s call him Jim, is that he was at almost the 70% retirement income threshold to his work income. 

So, the discussion continued on this path. Some looked in awe while others looked in envy. I naturally asked the question… is that your goal, to reach 70% of your income? Jim looked at me and said, “Well, yes. For me to have a comfortable retirement, I need at least 70% of my income.” My follow-up question… how did you determine the percentage? 

He looked at me as if I should know the answer. He replied that he was getting the impression from the context in the advertisements, talking to friends and newspaper articles.

I then mentioned (not asking another question to annoy him) that you all have the same retirement goals. 

See, we are fixated on listening to the confusion regarding what is required for a comfortable retirement. These advertisements or so-called experts are grouping everyone. The required amounts for a comfortable retirement are estimates, providing a general idea of what we may require. 

See, one’s retirement is not the same as the other. We all have different goals for retirement. Therefore, some require more and others less. The income required depends on your goals.  

You want to work with someone who will listen to your retirement goals. They will ask questions, drilling down on your answers. With this information, an advisor can incorporate it into the financial plan, which will help answer an important question. 

We get caught up with all the noise about retirement. We need to take a step back and visualize what retirement is for YOU. Once that is determined, then you look at the income required to live that retirement.