Building a Retirement Plan

A retirement plan doesn’t have to be complicated. It starts with a few honest questions about what you’ll spend, what you’ll have coming in, and what could get in the way.

Step 1: Estimate your monthly spending. Start with what you spend today. Some costs, like commuting, may go down in retirement. Others, like health care and travel, may go up.

Step 2: List your income sources. This may include Social Security, a pension, retirement accounts, savings, or part-time work. Write down roughly when each one starts.

Step 3: Look at the gap. If your expected spending is more than your expected income, that gap is what your savings may need to cover. Knowing the size of the gap helps you plan.

Step 4: Think about the "what ifs." What would happen if you lived into your 90s? If a spouse passed away and one income stopped? If you needed long-term care? These questions matter as much as the numbers.

Step 5: Decide how much risk feels right. Some people want guarantees for part of their income. Others are comfortable with more ups and downs. There’s no single right answer.

Step 6: Consider where insurance fits. For some people, products such as fixed or fixed indexed annuities, life insurance, or final expense coverage may play a role. Whether any of them fit depends on your situation, and features and availability vary by carrier and state.

Step 7: Revisit it. A plan isn’t a one-time event. Look at it again when something big changes.

The free Gavrel Retirement Readiness Review helps you work through these steps at your own pace.

This article is for general educational purposes only and is not tax, legal, or investment advice. Product features and availability vary by carrier and state.