Questions to Ask a Certified Financial Planner About Retirement

Article summary

• Meeting with a Certified Financial Planner (CFP) helps you build a personalized retirement strategy that goes beyond savings goals, covering income planning, healthcare costs and Social Security timing.
• Key questions to ask your CFP include how much you need to retire, whether you're saving enough, when you can afford to retire and how long your savings will last.
• The sooner you start planning, the more options you'll have, as regular reviews and adjustments can help keep your retirement on track as your life circumstances change.

Retirement is one of the biggest financial milestones you'll ever face. Whether you're approaching an empty nest, planning your next chapter after work or simply wondering if you're on the right track, meeting with a Certified Financial Planner (CFP) can help you make informed decisions about your future.

Retirement planning involves much more than reaching a specific savings goal. It's about creating a strategy that supports the lifestyle you want while preparing for the unexpected.

A meeting with a financial planner can:

• Help you understand how much money you need to retire
• Evaluate your savings strategy
• Create a plan for generating income through retirement

To get the most from your appointment, come prepared with these 6 key questions.

1. How much money do I need to retire?

This is often the first question people ask, and for good reason. While you've probably seen suggested amounts online, personal circumstances will determine how much money you should need.

A CFP can help estimate your retirement expenses based on the following factors:

• Housing costs
• Travel plans
• Healthcare expenses
• Lifestyle goals

They can also account for inflation, taxes and life expectancy to create a more accurate projection. 

2. Am I saving enough for retirement?

Once you've determined the amount of money you need to retire, your CFP can help you evaluate your current savings rate and investment strategy. Taxable investment accounts, 401(k)s and IRAs should be reviewed to determine whether you're contributing enough to meet your goals.

Your CFP can suggest strategies such as increasing contributions or taking advantage of catch-up contributions available to older workers.

3. When can I afford to retire?

Most people focus on the age they want to retire, but the more important question is whether their finances will support that timeline.

A financial planner can run retirement income projections based on different retirement dates.

• Retiring earlier may require spending adjustments or alternative income sources.
• Retiring one or two years later could significantly improve your financial outlook.

4. When should I claim my Social Security benefits?

The full retirement age for Social Security is the age at which you are eligible for 100% of your earned retirement benefits. This is typically between the ages of 66 and 67 (based on your birth year).

Retirement planning should include determining the optimal time to claim Social Security benefits. Claiming benefits before full retirement age typically results in reduced monthly payments. A CFP can help you determine the best strategy for when to claim Social Security and how it aligns with your overall retirement plan.

5. What healthcare costs should I expect?

Healthcare is often one of the largest expenses retirees face. While many people assume that enrolling in Medicare will cover most of their medical costs, the reality is more complex. While Medicare generally helps pay for hospital stays, doctor visits and some preventative care, retirees are often responsible for premiums, deductibles and copays.

A CFP can help estimate future healthcare expenses based on your age, health status and retirement timeline. They can also explain how Medicare works and whether a supplemental policy may make sense for your situation.

If you plan to retire before becoming eligible for Medicare at age 65, a financial planner can help you budget for private health insurance.

Long-term care is another important topic to review. Evaluate whether long-term care insurance, self-funding strategies or other financial resources should be part of your retirement plan. 

6. How long will my retirement savings last?

One of the biggest concerns retirees face is outliving their money.

A financial planner can model different scenarios to estimate how long your retirement savings will last based on your expected spending, investment returns and life expectancy.

No retirement plan is immune to risk. Your financial planner can also stress-test your plan against factors such as:

• Market downturns
• Inflation
• Unanticipated expenses

Regular reviews and adjustments can help keep your retirement goals on track as circumstances change. 

The bottom line

The years leading up to retirement are often a period of significant transition. Children may be leaving home, mortgages may be nearing payoff and career priorities may be shifting. These life changes create an ideal opportunity to reassess your financial picture.

Whether retirement is 5 years away or 25, the sooner you begin planning, the more options you'll have. Taking the time to meet with a financial professional today can help you build a roadmap for the future and give you greater confidence that your money will support the retirement you've worked hard to achieve.