You may know roughly what you have saved and when you would like to retire. What may be less clear is how those savings will support your everyday life.
A first retirement planning conversation is a place to start connecting those pieces. A few documents and some honest questions can help make it useful. You do not need a perfect spreadsheet or every account detail before you begin.
The goal is to understand your situation, identify what needs attention and agree on a practical next step.
Start with what you want retirement to look like
Before gathering statements, write down what you want your money to support.
When would you like to stop working? Would you prefer to reduce your hours gradually? Are you hoping to travel, spend more time with family or simply feel less dependent on your next paycheck?
Also write down your biggest concern. It might be running short of income, needing access to savings, making a decision you cannot easily change or making sure your spouse is financially secure.
Those answers give the numbers a purpose. If you and your spouse have different expectations, bring both perspectives into the conversation.
Gather a current picture of your accounts
Recent statements help establish what you own and how the accounts are organized. Useful starting points include:
- Workplace retirement accounts, such as a 401(k), 403(b) or TSP.
- Traditional and Roth IRAs.
- Bank savings, CDs and investment accounts.
- Existing annuities and life insurance policies.
For each account, note its approximate balance, account type and owner. If you are already taking withdrawals, include the amount and frequency.
An account list is enough to begin if you do not have every statement. Mark anything uncertain so it can be verified later.
For an existing annuity, the current statement and contract details can help clarify withdrawal provisions, surrender charges and any income benefits. A balance alone does not explain how the contract works. Our article on questions to ask about annuities and retirement income provides a useful starting point.
Gathering information does not mean you need to move an account or replace a policy.
Bring your retirement income information
List the income you already receive and the income you expect to receive later. Separate confirmed amounts from estimates.
If you have not started Social Security, bring a recent benefit estimate. Your personal Social Security account can show estimates for different starting ages. Those figures give you something concrete to discuss without requiring you to make a claiming decision during the first meeting. [1]
If you already receive benefits, note both the benefit amount and the amount deposited into your bank account. Medicare premiums and tax withholding can affect what reaches your account. [1]
For a pension, bring the benefit estimate and any payment options supplied by your employer or plan. Include information about benefits available to a surviving spouse, if applicable.
Also note other expected income, such as part time work or rent, and whether its amount may vary.
The point is to see which expenses may be covered by those income sources and what your savings may need to support. You can explore that connection in our article on the retirement income gap.
Estimate what you spend and what may change
A useful spending estimate can start with a few months of household bills and account activity.
Include housing, utilities, groceries, transportation, insurance, healthcare and debt payments. Then add less frequent expenses, such as property taxes, home repairs, travel and support for family.
For example, if an expense is $3,600 each year, setting aside $300 per month in your estimate keeps it from disappearing from the monthly picture.
Think about what may change when work ends. Commuting costs may fall, while travel or healthcare costs may look different. Write down your assumptions instead of treating them as settled facts.
If some expenses are still unclear, that is useful information too. Our article on unexpected expenses in retirement can help you think beyond routine bills.
Identify the money you may need to keep accessible
Write down any large expenses you expect over the next few years. These might include a home repair, vehicle purchase, move or family commitment.
Also note which funds you consider your emergency reserve.
This helps keep access to money part of the conversation from the beginning. Before considering any strategy, it is important to understand how much flexibility you need and what restrictions you would be comfortable accepting.
Bring questions about the person helping you
Preparation also means understanding the professional relationship.
Ask what services are offered, what licenses the professional holds, how compensation works and what any recommendation would cost. Ask which matters should involve your existing investment adviser, tax professional or attorney.
For investment services, the SEC provides a question guide covering qualifications, fees, compensation and the ongoing relationship. Insurance services and investment advisory services have different scopes, so clarify the role of each professional involved. [2]
A useful first meeting should leave you clearer about what was discussed, what still needs to be verified and what happens next.
If you only have fifteen minutes to prepare
Start with these five things:
- Your preferred retirement timing.
- A rough monthly spending estimate.
- A list of accounts and approximate balances.
- Your Social Security or pension information, if available.
- The three questions you most want answered.
Bring what you have. Missing information can become part of the next step.
Before sending statements, ask how to share them securely. Never share account passwords or login verification codes.
Start with a conversation
You do not need to have retirement figured out before asking for help.
Victoria Alden is a Retirement Specialist with Wilshire Group Financial Services in Los Angeles. Her work focuses on insurance and annuity strategies related to retirement income and financial protection.
If you would like to talk through your goals and questions, schedule a conversation with Victoria.
This article is for general education and is not individualized investment, tax or legal advice. Decisions should reflect your circumstances and, where appropriate, guidance from qualified professionals.
Sources
- Social Security Administration: Plan for Retirement. Supports the Social Security estimate and payment deduction information.
- U.S. Securities and Exchange Commission: Questions to Ask when Hiring an Investment Professional. Provides questions about investment professionals. This source does not describe Victoria's licensing or services.