Retirement anxiety. It is the nervous feeling you get in the pit of your stomach when you start to think about your retirement. We’ll talk about one of the best ways to ease that stress.
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Recently, we met with a client who is planning to retire later this year. He and his wife made good financial decisions and did a good job of saving. But he was not sure if he had saved enough to be able to live the life he wanted in retirement.
We started asking some important questions.
He knew how much he and his wife would receive from Social Security. He knew how much they had saved. But he did not know how much income that would provide or how much they spend every month.
Know Your Numbers
One of the biggest things you can do to help ease your retirement anxiety is to know your numbers.
It starts with knowing how much you spend. Knowing how much you spend will help answer many of the questions about income. This does not mean you have to do a detailed line-item budget. But, you need to have a good idea of how much money is going out every month.
It is important to know how much you will receive from Social Security or your pension. Once you have those numbers, you can compute the income you need from your retirement savings.
When you know your numbers, you can make the bigger decisions. Can you retire with confidence when you want? Will you have to adjust your lifestyle and spend less? Does it make sense to wait a year or two to retire?
Talk to a financial planner who can help you review your situation. This way you can ease your retirement anxiety.
Talk to a Certified Financial Planner™ Professional
About the Author
Neal Watson is a Certified Financial Planner™ Professional and a Financial Advisor with Fleming Watson Financial Advisors. He specializes in helping hard working, middle class families plan for retirement.