Frequently Asked Questions About Retirement Planning

It is never too early to start investing in and planning your retirement. If retirement is emerging into your future, you’ve probably asked yourself a million questions. Retirement can seem confusing and daunting. To help you understand, we have collected some frequently asked questions about retirement planning to help you assess your financial situation and consider your options.

When Can I Retire?

The most frequently asked question about retirement planning is “When can I retire?” 

You can retire when you want to leave the workforce, and you can afford not to work. However, many people have limitations on when they can leave their job and retire. For instance, some companies require employees to work 20 to 30 years before being eligible to receive a company pension. 

If you need social security to retire, you cannot receive benefits until you turn 62, and you cannot receive Medicare until age 65.

What Are the Biggest Financial Risks?

The most significant financial risk for many retired Americans is the cost of health care—whether you are at home, in the hospital, or in a long-term facility. When planning your retirement, you should consider the cost of health insurance. A number of insurance companies offer contracts that reduce health care costs, but the monthly payments can still be high. 

How Much Money Should I Save To Retire?

The amount of money you should save to retire depends on a range of factors such as:

  • How much you get from pensions or Social Security
  • How old you are when retiring
  • Monthly expenses
  • How long you live

There is no set amount, so it is best to work with a financial advisor to help determine how much you will need to save to retire. A financial advisor will calculate your spending habits, life expectancy, and inflation rates to calculate the amount. 

Which Assets Are off Limits?

People who decide to start investing in their retirement early often opt into a self-directed IRA account. A self-directed IRA is a retirement account that allows you to invest in assets such as precious metals, real estate, private companies, livestock, and much more. 

However, there are certain investments the IRS says cannot be held by IRAs, including items such as:

  • Alcoholic Beverages
  • Artwork
  • Rugs
  • Gems
  • Stamps
  • Antiques
  • Any metals except silver, gold, palladium, and platinum bullion

How Can I Plan for Retirement if I am Still Young?

The most important thing you can do while you are young is to invest in your future. Ask your company’s HR department about any plans available such as 401(k), 403(b), or SIMPLE. Not living above your means will save more money and help you live more freely when it is time to retire.

Plan diligently to ensure that you have taken extra precautions for your life after retirement. While the questions above are frequently asked about retirement planning, they are not the only things to consider while planning your retirement.

As time goes on, keep your financial records clean and updated, and invest in beneficial assets for your retirement journey!