Take Our Retirement Readiness Quiz

How do you feel about your retirement readiness? It’s a loaded question, I know, but one that can make or break your financial future. Being ready to retire is about more than having a large sum of money in savings and turning 65. In previous posts, I’ve covered various risks to our retirement that all of us face, such as inflation, longevity, and health care costs, among others. Where do you stand when it comes to these risks?

Part 1 of this quiz covers six risks. Read through the checklist and score yourself on each statement. There may be a few items that aren’t applicable to you. If they don’t apply, simply give yourself the credit and move on to the next item.

1. Longevity Risk

  • I have considered my health, family history, and life expectancy to estimate how long I can expect to live (1 point)
  • I have identified how many years of income I need to save for (1 point)
  • I know how much income I will get from known sources, such as Social Security and pensions (1 point)
  • I know my current household budget and have calculated my retirement lifestyle expenses (1 point)
  • Based on my current income needs of $__________ a month, and my known income sources of $___________ each month, I know that my income gap is $______________ (3 points)
  • I know how to fill my income gap and I have income for life (3 points)

Total Points out of 10: ____________

2. Inflation Risk

  • I have considered income sources and strategies such as TIPS, Series 1 Treasuries, and annuities with income riders that can help my portfolio keep up with inflation (2 points)
  • I have diversified my portfolio by investing in asset classes that are likely to perform well during inflationary times (1 point)
  • I have a safe withdrawal rate based on my initial portfolio balance that can have cost-of-living increases for a 30-year retirement period (1 point
  • I have considered working a few years longer or working part-time during retirement as a way to reduce my inflation risk (2 points)
  • My income during retirement will increase the longer I live (2 points)

Total Points out of 8: ____________

3. Withdrawal Risk

  • I have researched withdrawal rates based on my account balances, risk tolerance, and life expectancy, and have devised a realistic withdrawal plan (3 points)
  • My withdrawal strategy includes today’s expenses and substantial periodic expenses (2 points)
  • I understand the consequences of withdrawing more than my plan allows and am motivated to stick with my plan (1 point)
  • My financial advisor schedules regular meetings to review my strategy and make sure that I’m still on track (2 points)

Total Points out of 8: ____________

4. Healthcare Expenses

  • I have identified gaps in my health care coverage, especially if I’m retiring early (1 point)
  • I know when and how to sign up for my Medicare benefits so that I don’t incur late penalties (2 points)
  • As a state or federal worker, I understand the health care benefits connected to my pension (1 point)
  • I understand my Medicare options for Parts A, B, C, and D, and I have investigated my supplemental Medicare insurance options (2 points)
  • I am doing what I can to stay healthy and active (2 points)

Total Points out of 8: ____________

5. Spousal Continuation

(This section is for married persons only. If you are single, add 8 points to your score and move on to the next section).

  • My spouse is involved with the financial decisions of our household and is present whenever possible during strategy meetings with professionals (1 point)
  • We have maximized the larger of our two Social Security checks so that the survivor benefit will be as large as possible (1 point)
  • We have looked carefully at our pension benefit election options and considered life insurance (1 point)
  • Our income strategy includes joint-lifetime income so that my spouse will not suffer an extreme loss of income in the event of my passing (1 point)
  • Our long-term care plan considers the needs of a surviving spouse (1 point)
  • We have met with a qualified professional and have our will or trust in order. All of our beneficiary designations are up-to-date (1 point)
  • I am confident that in the event of my passing, things will transfer to my loved ones in the manner that I wish (2 points)

Total Points out of 8: ____________

6. Long-Term Care Expenses

  • I have talked to my family about my long-term care needs and desires, and I have considered that relying solely on them for care may not be in anybody’s best interest (1 point)
  • I know what my insurance options are beyond the traditional long-term care policies (1 point)
  • I understand the limits of Medicare and the income limits and requirements for applying for Medicaid (1 point)
  • I am aware that if I am a war veteran of the U.S. Armed Forces or the spouse of a veteran, I may be eligible for Aid and Attendance (1 point)
  • I have explored the long-term care benefits offered by certain annuities (1 point)
  • I am confident that in the event of a long-term care situation, I have done everything I can do to protect my dignity (3 points)

Total Points out of 8: ____________

What Next?

How did you score on these six areas of retirement risk? Do you see gaps in your retirement planning? If you feel you need more information on any of the risks, or if you would like to discuss how to get yourself in the best shape possible for a RichLife retirement, download our free report, 12 Keys to a Successful Retirement Strategy and contact my office at 770.249.7424 or email me at beau@richlifeadvisors.com. Stay tuned for part 2 of the retirement readiness quiz coming next month.


About Beau Henderson

Beau Henderson is a financial advisor, author, coach, radio personality, and CEO of RichLife Advisors. He has helped over 3,000 clients to not just improve their relationship with money, but to live the life of their dreams.

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RichLife Advisors, LLC provides investment advisory services through Fiduciary Capital, Inc. Beau Henderson is a licensed life insurance professional in GA, SC, TX, CA, IL, KY, OH, MI, PA, MD, and NY.

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