As retirement planning professionals, an important part of our job is to provide people with information. The truth is, we can’t provide them with the right information if we don’t first understand the kinds of questions they’re asking. That said, let’s take a look at five common questions the average American asks about retirement planning and the best answers.
At what age should I start taking Social Security?
When it comes to retirement planning, this is one of the most commonly asked questions. Why? People want to know the best way to handle their retirement to be covered both now and in the future. Do they start collecting Social Security at age 62 and accept smaller payments? Or do they wait longer so they can collect larger payments? Should the heads of the house take from Social Security at different times and ages? According to the Center for Retirement Research at Boston College, most married men claim Social Security benefits at age 62 or 63, but this is before the age that maximizes the household’s expected present value of benefits (EPUB). As retirement planning professionals, we can offer consumers unique insight and expertise, helping them make the best possible decision for their unique situation.
What amount of money do I need to retire?
Even though this is a prevalent question, it’s also challenging to answer. The right answer is different for each person and will vary depending on how long they are likely to live, their lifestyle, expenses, medical issues, and more. Even though we can’t predict the future, we can help our clients plan for many possible scenarios. Based on those scenarios, we can help them determine a monetary range that would allow them to retire comfortably.
How do I know how long my money will last once I retire?
Although the average person probably looks forward to retirement, it can also be a scary process. The “unknown factors” can give some people a sense of uneasiness. That’s where retirement planning comes in. Instead of guessing, we can help our consumers use numbers and budgets to estimate how long their money will last based on how much they plan to spend. We can make their transition to retirement less scary and more exciting.
How will I cover medical expenses once I’m retired?
Typically, the older we get, the more medical attention we need. So, it’s no wonder people want to know how they will cover their medical expenses, especially when they reach the age of 65 when they become eligible for Medicare. Which Medicare plan is best for our client’s situation, and will that plan change their retirement future? As retirement planning professionals, we help our clients find information and resources to cover the rest, such as a Medigap policy or long-term care insurance.
Do I need an annuity?
When planning for retirement, another common question people ask is whether they should invest in an annuity. They need our help as professionals to determine whether it makes sense and whether the benefits outweigh the costs. This question is best answered in the context of a holistic retirement plan. This question is likely in the back of our customers’ heads, whether they specifically bring it up or not, but we are here to help in any way we can.
These are five of the most commonly asked retirement planning questions, but the truth is, there are so many more. People today turn to the internet for answers to their questions more than ever before, and retirement is no exception. It is important to us to continue to understand our customers’ needs, research the most reliable answers, and strive to aid in every customer’s retirement needs and wants. RITA is a source of information and resources for both consumers and professionals. Visit our website to stay up to date on the latest industry news and events.