If you are age 50 or older, you are at least thinking about retirement. The thought of retiring is frightening to many people. Concerns about investment returns, Social Security, medical costs, and the solvency of pension plans have many people delaying retirement plans. A recent survey (PDF) from TD revealed the average Baby Boomer is a half-million dollars short on retirement savings. Postponing retirement may be the only option for people who started saving too late in their careers.
The amount of retirement savings is only part of the equation. How much a person plans to spend in retirement is just as important. Getting your spending under control before retirement is an important planning step. A retiree’s spending will be impacted by how they plan to spend their time after retirement, where they want to live, and whether they plan to work part time. Consumer debt is another factor that hinders many people’s ability to build wealth.
Creating a plan begins with assessing where you are today on the path to retirement. The International Foundation for Retirement Education (InFRE) developed a quiz to help people make informed retirement planning decisions. InFRE’s RetirAwareness Quiz is free and can be taken online. The quiz was created by retirement experts to evaluate your knowledge in key areas of retirement readiness. Your answers are scored at the end of the quiz. Helpful answers and directions are provided to help you improve in areas where you had a low score.
InFRE believes retirement readiness begins with retirement literacy. Test your knowledge of retirement issues by taking the RetirAwareness Quiz. The 2012 Retirement Confidence Survey found that 37% of those surveyed think they will have to wait until after age 65 to retire. Don’t be one of them.