Retirement quiz: How ready are you?

You’ve been actively saving and planning to retire, but can you be sure your retirement plan is on track? Take this retirement quiz to find out if you’re on the path to a comfortable-for-you retirement.  

Retirement planning is complicated. Between multiple streams of retirement income and planning for the unknowable, there are myriad factors to consider. If you are nearing or planning for retirement, the best time to review your retirement plan is now.

Take this true-or-false retirement quiz to discover if you’re on the path to a comfortable-for-you retirement. 

Retirement quiz

True or false?

1. You have a goal retirement age that you’re actively working toward. T/F
2. You have a plan for what retirement will look like, including where you’ll live and what you’ll spend your time doing. T/F
3. You know how you’ll receive income after retirement. T/F
4. You have a plan for paying healthcare costs after retiring. T/F
5. By the time you retire, you’ll have enough savings to cover both essential and discretionary expenses for 30 years or more. T/F
6. You have reviewed and rebalanced your investment portfolio in the last 2-3 years. T/F
7. If your retirement plans are coming up short of your desired goal, you will consider the possibility of working longer and delaying retirement. T/F

How did you answer?

If your quiz answers were mostly “true,’ you’re on your way to a well-planned retirement. If you had more “false” answers, it’s time to start exploring your retirement options and come up with an actionable plan to get you on track. Use our retirement calculator to test scenarios and see where you stand today and how far you have to go to meet your goals.

While a financial professional can help you design a plan to ensure you’re prepared, here are some steps to get started.

Your goal retirement age

The closer you get to retirement, the more concrete your plans should be. That may mean taking a hard, realistic look at your circumstances and savings goal. At what age are you financially able to retire? Would it be beneficial to extend that timeframe to grow your retirement savings?

You’ll also want to reassess your spending plans in retirement to see if you can make reasonable adjustments without greatly affecting your anticipated lifestyle.

Planning for what retirement will look like

Consider other aspects of retired life, like where you’ll be living, how often you’ll be using your vehicle and how you plan to spend your time and money. A plan that extends beyond your financials can help you get the most enjoyment out of retired life.

You can’t always control the events that affect your financial life, so be sure to review your retirement plan at least annually and be prepared to make changes that will help you feel confident about your long-term financial security.

Managing your income after retirement

While many retirees are eligible for Social Security, you should be prepared to rely on other sources of income. In fact, Social Security is designed to cover just 40% of your income. To supplement the remainder of your income, you’ll need to have other funding in place, such as retirement accounts (401(k), 403(b), IRA, pension) personal savings and investment accounts. You could also reconsider your Social Security start date. If you can delay receiving Social Security until age 70, your benefits could be up to 32% higher than at full retirement age.¹

Another step you can take to increase your retirement income is to boost investment contributions now as much as possible. If you’re 50 and older, you can put aside additional catch-up contributions in employer-sponsored retirement plans and IRAs than you could previously. Even if you only have a few years left before retirement, a boost now can make a difference later. 

Paying for healthcare costs in retirement

The average 65-year-old couple retiring now can expect to pay over $300,000 in healthcare costs throughout retirement, not including long-term care.²

Understand what Medicare covers and how to apply, and think about how you can use a tax-advantaged Health Savings Account (HSA) to cover Medicare premiums, long-term care insurance premiums and more.

The 30-year retirement goal

By the time you retire, you should have enough in savings to cover all your spending needs for 30 years or more. A 65-year-old can expect to live over 20 years longer.³ Overshooting on your budget gives you a healthy buffer in case of an unexpected event.

Keep your retirement portfolio updated

Even if you’re years away from retirement, updating and rebalancing your portfolio is an essential part of financial health. Regularly review your asset mix and risk tolerance, rebalancing any overweighted assets as necessary.

Know when to readjust your retirement goals

Even the best-laid plans for retirement can drift off course, often through no fault of your own. If you find yourself in a position where your targeted amount of retirement savings is not what you expected it to be, it may be time to adjust your strategy. This could involve continuing to work so you can generate income for longer, which will help you avoid tapping your savings for an extended period and provide the opportunity to accumulate more in your account.

This retirement quiz is a starting point for assessing your retirement readiness. Learn more about saving, preparing for and living in retirement with our retirement planning toolkit, and consider working with a financial professional to design a plan that helps you work toward the retirement you want.