Ten Years Until Retirement: Are You "In The Window?"
"IN THE WINDOW" OF RETIREMENT PLANNING
Most financial planners will tell you that the first 5 years of your retirement and the last 10 years of your working career are the periods of time that have the most significant impact on your long-term financial security. If you are "in the window," as this time frame is called, then you need to be thinking about how your current financial decisions will affect your quality of life in retirement.
In this series of articles I will present some financial and life-style issues that you need to consider as you begin your retirement planning. Before moving into the details, there are three general facts about retirement that should drive your family financial plan.
Retirement is more expensive than you think.
Most people underestimate the expenses of basic retirement living and are too
optimistic in predicting how long their retirement funds will last. A retiree trying to live
on interest income in the past few years knows that savings can shrink quickly in a
low interest rate environment.
Retirement will probably be longer than you think.
Considering the alternative, this is good news. Life spans are increasing and the number
of people living into their 80s and 90s is rapidly expanding. Retiring at 65 could easily mean
that you're spending the next quarter-century depending on Social Security, pensions and
whatever investments that you've accumulated.
Retirement planning isn't just about the money.
While most people think about retirement planning in financial terms, retirees face
lifestyle issues that can be nearly as challenging. Talk with anyone who's been out of
the workforce for a while and you might hear concerns about how they fill their time
(you can only play so many rounds of golf, sorry Rick and Rick) or how they miss
the social aspects of going to the office every day.
For those of you "In The Window," I'll be using this blog in the coming months to explore
many of the issues that surround your count-down to retirement.
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