12 Questions to Ask Yourself About Retirement

"Please think about your legacy, because you are writing it every day." –Gary Vaynerchuk

Retirement is a significant stage in life that can cause several different emotions depending on how well prepared you are, not only financially but mentally.

Some of my clients have a very clear picture of their retirement and have been working towards achieving their vision for many years while others are not there yet emotionally, mentally, or financially to make the transition.

Gene Cohen, M.D., Ph.D., author of The Mature Mind: The Positive Power of the Aging Brain, has developed a 12-point questionnaire to help you determine your Retirement Readiness Quotient (RQ).

Cohen states, “If you have not given much thought to any of these questions, or if you do not have many good answers for them, you are probably not well prepared for retirement.”

WHAT'S YOUR RETIREMENT 
READINESS QUOTIENT? 

1) Why are you thinking about retirement now? Significance: Your reasons for retirement should be sound and not impulsive or the result of inadequate planning. (Give yourself 1 point for a clear answer, 0 points if your reasoning seems fuzzy or you are simply uncertain.)  

2) Do you really want to retire? Significance: This seemingly simple question is an excellent predictor of success in the transition to retirement. It asks you to consider your deepest desires and motivations, not just what you “think” you ought to do or what other people expect you to do. (1 point if yes, 0 if no.) 

3) What do your family and friends say about you retiring?  Significance: Feedback from those who know you well can be invaluable when you're contemplating retirement. Do they think it's a good decision? Do they think you have thought it out well and prepared sufficiently for it? (1 point if they think you’re doing the right thing.)

4) Have you considered whether you want a complete or partial retirement? Have you considered part-time or temporary work, or even a less-than-fulltime small business venture (emphasis on “considered”)? Significance: If you are not entirely sure about retirement or are concerned about finances, then phased, or partial retirement is an important option to consider. (1 point if you’ve considered the options, even if you choose full retirement.)

5) Are your finances sufficient to carry you through your retirement years while continuing to enjoy your current lifestyle? Significance: If you answered no, you clearly have further financial planning to do. (1 point if yes to both parts of question; 0 if no to either part.)

6) Have you attended a retirement preparation program or seminar focused on financial planning? Significance: Such programs can help you plan spending, predict future income, and anticipate future needs. A bewildering number of options exist, and getting some objective advice is invaluable. (1 point if yes, 0 if no.)

7) What gives you a sense of meaning and purpose in life? Significance: A lack of clarity about your core values and what aspects of life hold meaning for you is often associated with a less fulfilling retirement. (1 point if when you write it down and read it aloud you feel you’ve adequately identified what gives you a sense of meaning and purpose; 0 points if your reasoning seems fuzzy or you are simply uncertain.)

8) What specific types of activities and experiences are important and fulfilling for you? Significance: This is a more specific version of question 7. Your answers here provide a window on how well you really know your mind and how well you have planned how to accomplish what is important to you. (1 point if your description of how your plans relate to what is important to you makes sense, or 1 point if someone who is reliable and knows you considers your answer good and clear.)

9) Have you attended a retirement preparation program or seminar focused on social planning (e.g., community activities and interpersonal endeavors)? Significance: Prospective retirees often fail to adequately plan how they will actually spend their time in retirement. Floundering in these areas can lead to frustration and a disappointing retirement life. (1 point if yes, 0 if no.)

10) Have you developed outside interests, hobbies, volunteer activities, or areas of new learning? Significance: Developing new interests can improve the quality of retirement life, and engaging in challenging new endeavors can present new opportunities for personal mastery and empowerment that are associated with positive health outcomes. (1 point if yes, 0 if no.)

11) Have you planned new activities that would allow you to interact with people on a regular basis and that offer chances to form new friendships? Significance: Making new friends is often more difficult in retirement, and loneliness is associated with a host of mental and physical ills. (1 point if yes, 0 if no.)

12) During retirement, will making only a modest contribution in volunteer activities be sufficient for you? Significance: People who have had satisfying and personally meaningful careers can find the transition to retirement difficult if they do not plan for other ways to make a difference. Such people might consider a phased retirement so they can continue with fulfilling work while starting their retirement. (1 point if yes, 0 if no.)

SCORING

• 12 points: You’re in position for a great retirement!

• 10-11 points: Your retirement will likely be highly satisfying.

• 8-9 points: Your retirement could have problems that are likely fixable.

• 6-7 points: You could be challenged by ambivalent feelings about retirement, requiring a solid effort to bring your situation up a notch.

• 3-5 points: You are potentially in the trouble zone where your retirement might not work well unless you make a major effort to get it on track.

GET RETIREMENT READY WITH A REVERSE MORTGAGE

You're not alone if your RQ is not where you want it to be or is lower than expected. Fortunately, there are many experts, resources and tools out there that can help, and one effective financial solution is a reverse mortgage.

Reverse mortgages have undergone several major changes for the better over the years, which has led many financial professionals to take note. Now when used as a part of a coordinated retirement planning strategy, a reverse mortgage can improve the overall success rate of your portfolio and help make your vision for retirement a reality.

Would you like to learn more about a reverse mortgage and how it may help you prepare for retirement and live out your golden years with financial peace of mind?

Contact Cynthia Kee to have a conversation or to set up a complimentary personal assessment.