The 6 most important retirement planning questions

Steve Vernon suggests “as part of your retirement planning, take a little time to imagine that you'd live forever. What would you do differently? The same? Talk it over with your spouse, family, and friends. Not only will it be a fun discussion, it will probably give you some powerful insights into how you can make the best of your rest-of-life”.

He poses six questions for us to consider when planning our retirement lifestyle: who-what-when-where-why and how?

Why: What are the reasons for the life you want? What would you do if you had one year to live?  What would your retirement look like if you could live forever?

Who? Who do you want to spend time with? Which people -- spouse, partner, family, old friends, co-workers, new friends -- give you the most pleasure and meaning in life?

What? What will you be doing after you retire? Will you continue to work? Do you want to travel? Are there hobbies you'd like to pursue now that you have more time? What about volunteering? Or do you want to spend more time with family and friends? What gives you the most joy, meaning and purpose in life?

When? When will you stop working? Will it be when you're tired of your current job? Or when you no longer need the money? Or maybe you'll keep working until you're no longer physically able to work? Will you stop working abruptly or phase down? The answers for each person will depend on how much money you need for living expenses, whether you enjoy your work and whether you have a "bucket list" of other things you want to do.

Where? Will you live in your current house? Or will you downsize to something that's in the same general location? Maybe you'd like to move far away or be close to children and grandchildren. Or do you plan to go where your work takes you?

How?  The answers to the preceding questions will dictate how much money you'll spend on living expenses, which in turn tells you how much retirement income you need.

Vernon urges us to “discuss these questions with your spouse, partner, family and close friends -- people who care about you and are in the same boat. Be open to their points of view without judgment -- you might be surprised at the insights you'll gain. The discussions will also bring you closer together to your family and friends. It's a great use of your time!”

For the entire article and the rest of Steve Vernon’s series called  “16 weeks to plan the rest of your life”, see this link.