STRUCTURED RETIREMENT PLANNING
Retirement Planning in Five Stages
we now have to count mostly on ourselves to fund our own retirement.
A Forbes Magazine column provides some insight into the new five phases of retirement planning:
Accumulation. This begins when you start work and ends when you retire, with the “new normal” goal of saving approximately 10 percent of your income each year to put towards retirement.
Pre-Retirement. This starts when you are 50 years old, and about 15 years from retirement. This is the time to get your retirement plan in place, make sure it is being financed properly and learn what you need to know about Social Security and Medicare.
Early Retirement. This phase starts when you retire and goes until you are 70. If you don’t retire at 65, some of these tasks can take place later. This phase is all about communicating with your family about your financial plan and estate plan, assessing how well you are able to live on your retirement savings and fine-tuning your income and expense projections.
Mid-Retirement. Begins at age 70 and lasts as long as you are of sound mind and body. In this phase, you need to discuss with your family what should be done in case your condition begins to deteriorate – this is the time to ensure you have your durable powers of attorney in place and your will is up to date.
Late Retirement. This “end of life” phase is when your health has deteriorated significantly, and you must count on the help of others for daily functions. By this point, all your estate and retirement planning will hopefully make this period as manageable as possible.
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