Do You Need a Financial Plan Before a Retirement Strategy?

Most people nearing retirement have thought about when they’ll exit the workforce for years. Perhaps the age at which you’ll leave has changed or maybe you’ve decided to continue working part-time. Even if you’re younger and have just started contributing under a company match policy, you might wonder about the recommended next steps.

The truth is that a financial plan and a retirement plan work together. While your retirement plan is about getting you to a specific point at which you no longer want or need to work, it’s also a component of your broader financial plan.

Investing money for retirement is a daunting process for so many, who may be concerned about making their retirement savings last for years after they leave the workforce. Furthermore, the unknowns of possible healthcare costs can raise many questions around retirement age, too. Given that one in four Americans will develop a disability during their lifetime that may render them unable to work, you or your spouse may also miss out on full retirement savings or have to exit the workplace even sooner than you expected.