DO NOT Retire Until You Can Answer These 5 Questions
At Sullivan Financial Partners, we believe retirement shouldn’t be a leap into the unknown. It should be a confident step into the next chapter of life. But before you take that step, there are five critical questions every future retiree must answer.
Let’s dive into what they are—and why they matter.
1. How Much Do You Actually Need?
This is one of the most common (and misunderstood) questions. Many people default to rules of thumb, like needing 70% of their pre-retirement income—but that’s just a starting point.
The real answer depends on your lifestyle. What do you want to spend in retirement—not just on needs, but on wants and dreams? The most successful retirees we work with don’t rely on guesswork. They have a detailed plan showing exactly where their money will come from and how it will support the life they want to live.
2. When Will You Take Social Security?
Social Security can begin as early as age 62, but the longer you wait (up to age 70), the higher your monthly benefit—by about 8% per year of delay.
So what’s the right answer? That depends on your health, life expectancy, income needs, and whether you’re still working. Claiming early may reduce your benefit—and create tax complications—especially if you’re still earning income. Delaying may increase your benefit, but comes with the risk of not collecting long enough to “break even.”
There’s no one-size-fits-all solution. That’s why your Social Security strategy should be integrated into your overall income plan.
3. Are You Planning for the Unexpected?
This includes everything from healthcare costs to long-term care needs to market downturns. You need a strategy for all of it.
- Healthcare costs tend to rise as we age. Are you ready for Medicare premiums, out-of-pocket expenses, and prescription costs?
- Long-term care is something no one wants to think about—but failing to plan for it can be financially devastating. Whether you use insurance or self-insure, the key is having a plan.
- Market downturns are inevitable. If your investments drop right after you retire, will your plan still hold up? That’s why we encourage building in buffer strategies and emergency funds that provide stability regardless of market performance.
4. What Is Your Legacy Plan?
Before you get into wills and trusts, ask yourself: How do I want to be remembered?
Legacy isn’t just about money. It’s about the impact you’ve had on others—the lessons, values, and memories you leave behind. But yes, the financial side matters too.
- Are your wills, trusts, and beneficiaries up to date?
- Do you have a plan for minimizing taxes on wealth transfer?
- Have you considered charitable giving as part of your estate?
Small adjustments in your estate plan can create big impacts. Whether you’re passing wealth to loved ones or giving to causes you care about, legacy planning brings clarity and purpose to your financial decisions.
5. What Are You Retiring For?
This is the most important—and most personal—question of all.
Why are you retiring? What do you want to do? This answer is different for everyone, and it can include:
- Spending time with grandchildren
- Traveling to places you’ve always dreamed of
- Volunteering or supporting meaningful causes
- Exploring new hobbies or passions
Whatever it is, make sure your retirement plan supports it. Retirement isn’t just about not working—it’s about living fully. This is where your dreams become goals, and your financial plan becomes a life plan.
Final Thoughts
If you haven’t answered all five of these questions yet, now’s the time.
At Sullivan Financial Partners, we walk clients through this process every day as part of the Confident Retirement Journey. It’s not about hitting some magic number—it’s about building a plan that lets you retire with clarity, purpose, and peace of mind.
Let us help you explore the possibilities and create a plan that’s truly built around you.
Ready to start your Confident Retirement Journey?