Course Overview
Are you looking forward to the day you retire? Or, do you dread the thought? Being able to retire when you want and how you want is important to many people. Planning ahead can put you in a position to live comfortably during your retirement.
The objective of this course is to help you with your planning for retirement. Each of the ten modules provides information that can be valuable in answering the questions you need to consider as you make your plans. The modules include specific goals , activities to complete, and sources for more information.
Before you begin, you may go to the Guide and print out the entire document. Use this Guide with the modules.
Module 1a: Retirement Readiness Rating
The Retirement Personality Profiler is a series of questions to help you identify your financial personality.
Retirement Personality Profiler
(Source: Choosetosave.org)
According to the quiz developers, this quiz will show you which of five major money personality types most closely matches your own tendencies: Hoarder, Spender, Money Monk, Avoider, or Amasser.
You should allow about 15 minutes to answer the questions.
Back to Module 1
Module 1 – Module 1a | Module 1b | Module 1c | Module 1d
Proceed to Module 2
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 1b: Life Expectancy Calculators
When you start to plan for retirement, it is helpful to think about how long you will live.
There are several calculators that will help you think about all of the factors that are involved, such as your health and how long your parents lived.
The Longevity Game
(Source: Northwestern Mutual Life)
This game helps you to determine possible life expectancy by asking questions about your lifestyle. You should allow 15-20 minutes to play the Longevity Game.
Back to Module 1
Module 1 – Module 1a | Module 1b | Module 1c | Module 1d
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Proceed to Module 2
Module 1c: Risk Tolerance
When you begin to plan for retirement, you will want to think about your level of risk tolerance when making investment decisions.
This calculator will help you to determine what your risk tolerance is at present.
Investment Risk Tolerance Quiz
(Source: New Jersey Agricultural Experiment Station Rutgers, The State University of New Jersey)
This questionnaire, Investment Risk Tolerance Quiz, was developed by Rutgers University. There are 13 questions to answer.
Follow-up: Ask your spouse or partner to evaluate his or her risk tolerance. Then discuss how you feel jointly about the level of risk you are comfortable with in saving for retirement.
Back to Module 1
Module 1 – Module 1a | Module 1b | Module 1c | Module 1d
Proceed to Module 2
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 1d: Your Retirement Lifestyle
The amount of money you will need in your retirement years depends on the lifestyle you plan to lead. The following list of questions will help you decide what you really want in retirement.
- Will you stay in your current home, move to a different location, or purchase a smaller home or a vacation home?
- Will you want to work for additional income? Will you want to start a new career?
- What do you want to do with your time? Hobbies? Travel? Recreation? Volunteer?
- What will you do for transportation? Use your own car or public transportation?
- How often will you eat out or entertain friends or family?
- How will your clothing and personal needs change?
- What medical risks are you likely to face?
- What would you like to do if your health declines and you need help with daily living? Stay in your own home? Move in with your children?
More Information:
10 Exceptional Tips for the Average Joe or Jane as You Transition to Retirement (Source: newretirement.com)
Back to Module 1
Module 1 – Module 1a | Module 1b | Module 1c | Module 1d
Proceed to Module 2
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 2: Expenses in Retirement
It is important to think about what your expenses will be after retirement. A rule of thumb is that 70% – 80% of your current income will be sufficient in retirement.
Retirees who plan to very active may need the same amount of income in retirement that they earn at present.
Retirement Calculators
(Source: Vanguard)
There are also other calculators on the site that might be helpful.
Before you use the calculators, you will need to gather information about your current expenses.
Back to Module 1
Proceed to Module 3
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 3a: General Social Security
Many people will be eligible for Social Security retirement benefits. If you want general information about Social Security, you should begin at the Social Security website.
When to Start Retirement Benefits
(Source: Social Security Administration)
This information can help you understand how Social Security can fit into your retirement decisions.
Back to Module 2
Module 3 – Module 3a | Module 3b | Module 3c
Proceed to Module 4
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 3b: Retirement Age
The age you choose to retire will determine the Social Security retirement benefits you receive.
Resources
Early Retirement
(Source: Social Security Administration)
You will find a chart to show year of birth, full retirement age (years and months reflecting the changes), and the percentage benefits are reduced for early retirement. You should allow about 15 minutes to examine the chart.
Delaying Retirement
(Source: Social Security Administration)
This link will provide information about delaying retirement.
Questions
David was born in 1955. He wants to know:
- When would he receive full retirement benefits based on his birthdate of 1955?
- How would his benefits be reduced if he retired early at age 62?
- What would his benefits be if he waited until age 70 to retire?
Back to Module 2
Module 3 – Module 3a | Module 3b | Module 3c
Proceed to Module 4
Overview | Module 1 | Module 2 | Module 3 | Module 4 | Module 5 | Module 6 | Module 7 | Module 8 | Module 9 | Module 10
Module 3c: Social Security Benefits Calculators
Social Security has a number of ways for you to estimate your Social Security benefits online.
You can use the Social Security Estimator to compute estimates of your future Social Security retirement benefits. The Social Security Estimator will give…