Find Your Path series part 3: Be Curious
Every journey to and through retirement is unique and personal. In the final part of this series, we will look at the impact that an income stream can have on your lifestyle in retirement.
As we live longer and healthier lives, ensuring your retirement plan meets your needs is even more important – it’s no longer sufficient to simply think about saving enough money. There are many factors to consider and discuss with your financial professional. It’s a good time for curiosity – ask questions and research new options.
Will you have an income gap?
Pensions and Social Security used to be the main funding for retirement. Now the responsibility lies with you and your personal assets might play a more significant role. An important step in planning your future is identifying your needs and priorities. Do your assets and financial plan support that vision, or is there a gap between what you have and what you need?
What will you need?
Think of your income needs as part of a pyramid, with essential, daily expenses making up the base of the pyramid. You’ll want to start with these basic needs before potentially including expenses in the next levels.
You can use the following exercise to determine whether there’s a gap between your income needs and the sources you might have available to fund those needs. Once you’ve determined if you have a gap, you and your financial professional can discuss how to cover it. It’s important to find solutions to bridge the income gap between where you are and the retirement lifestyle you’ve dreamed about.