You want to opt out of the rat race and relax on the beach. But have you considered what it entails? You ought to have the financial back-up to sustain your expenses and prepare yourself for the change in lifestyle. Answer these questions to know how well prepared you are for retirement.
1. The feeling that I make a difference at work is
a. Extremely important
b. Somewhat important
c. Of little importance
d. Not important at all
2. My nest egg comprises
a. Investments made so far
b. Superannuation benefits
c. Immediate savings
d. Nothing at all
3. My retirement benefits make me
a. Feel secure
b. Feel extremely reassured
c. Worried
d. Uncertain about the future
4. To meet my future financial responsibilities, I am counting on
a. My next increment
b. Increasing my savings
c. Winning a lottery
d. My spouse’s savings
5. Retirement for me means
a. Living on a pension
b. Having to cut expenses
c. Being financially dependent
d. Having new income choices
6. When I retire, I
a. Will be financially independent
b. Will depend on my children for support
c. Don’t know what will happen
d. Will look for a job to supplement income
7. I will invest my entire retirement corpus in
a. Bank deposits
b. Equities
c. Real estate
d. Gold
8. After I retire, I will
a. Maintain my lifestyle
b. Cut on expenses
c. Not know what to do
d. Sustain on a pension
9. Post retirement, my appetite for risk will
a. Go up
b. Come down
c. Remain unchanged
d. Depend on my savings
10. My spouse
a. Is eager that I retire
b. Dreads my retirement
c. Has planned my post- retirement life
d. Wants me to enjoy retired life
11. My retirement plan
a. Is in place
b. Has started, but needs more effort
c. Is yet to start
d. Isn’t required. I can manage without one
12. After retirement, I
a. Have planned how to use my time
b. Don’t have a clue about what I will do
c. Have plans, but they may not be fulfilling
d. Am already over-committed
13. The monthly pension I’ll get after retirement will
a. Be sufficient to sustain my living expenses
b. Not be enough to sustain my expenses
c. Supplement my income from other sources
d. Remain uncertain
14. I’m concerned about
a. The financial strain I might feel after I have retired
b. How my quality of life may come down
c. How much I need to save for my retirement
d. None of the above
Score: Give yourself 1 point for the following answers
1a, 2a, 2b, 3a, 3b, 4a, 4b, 5a, 5c, 6a, 6b, 6d, 7a, 8b, 9c, 10b, 11c, 11d, 12b, 12c, 13a, 14d
WHAT THE SCORE SAYS
15-22 points: What you might need is a holiday. Early retirement is something you might like to talk about, but you aren’t ready for it yet.
9-14 points: Early retirement, maybe. But you’ll have to think about it more and figure out what your career really means to you.
0-8 points: If your finances allow, you can retire tomorrow.
