If you are 50 or older, it is time to start thinking about your exit from the working world. The sooner that you start planning your retirement strategy, the more time you will have to explore all the different options you have and take the necessary actions. The question is “Are you really ready to retire?” Ask yourself these questions to find out!
Are you starting to think about retirement and your exit from the working world? The sooner you start planning, the more time you will have to explore all of your retirement options and create the right strategy for you. The big question is “Are you really ready to retire?” Take our quiz to find out!
1. If you were born between 1943 and 1954, what percentage of your full Social Security benefit will you lose if you collect at 62 when you are eligible, rather than at the normal retirement age of 66?
2. If you retire at 66 and inflation over the next 25 years averages 3%, how much buying power would you lose by the time you are 91, without inflation-adjusted cost of living increases?
a. One third of your buying power
b. More than half
3. Retirement savings must last the rest of your life. What are the chances that at least one member of a 65-year-old married couple will live to be over 92?
4. To make sure that you don’t outlive your savings, what’s a good rule of thumb for annual withdrawals?
a. Don’t touch the money until you really need it
b. Restrict your withdrawals to 4% of your savings during the first year of retirement. Increase withdrawals to keep pace with inflation in the future.
c. Withdraw the money only in case of emergencies.
5. How much should a 65-year-old couple retiring today expect to spend on out-of-pocket healthcare costs throughout their retirement years?
6. The average cost of a private room in a nursing home is around $81,000 a year. Who covers that cost if you need care?
a. Your health insurance
c. You do, unless you have special long-term care insurance
How did you do? If you got most of the questions right, way to go! You are off to a good start. If you think you have some work to do, let MBT Bank help! We offer an online retirement calculator to help you figure out what it will take to create a secure retirement. We want to help you feel confident and secure in your later years. Contact us today!