A retirement readiness assessment is an important final step. Will more income be needed to meet expenses? If the options for generating more income are risky or difficult, it may be necessary to reassess retirement plans.
Do you have money in the bank or have good income sources? Is it really time to retire? Do an honest appraisal. If finances are lacking, it may be necessary to continue working. Circumstances with family members are also part of the picture. Poor health, senior care, and school can have a major impact on timing.
It may be that expectations were set to high. Go back to the Step 1: visualization process to modify expectations and goals. This could put expenses at a more attainable level.
In Step 2 you can specify costs again at a more reasonable level. This may require cutting back in optional areas.
Step 3: future new expenses will be the area that may be most be impacted. Look objectively at the facts.
After adjusting expenses, continue to work on Step 4: income sources. As you explore employment options, feasibility of making up the gap between expenses and income will become clearer. Set this additional income into the table.
Revisit the Step 5: gap analysis to determine needs. Hopefully, the gaps are now more manageable. Build a modified Step 6: action plan. This should be more attainable and easier to take action which is Step 7.
The full table formulated by these steps is included below. You can use it as a guide for generating your own calculator. Having retirement readiness hurdled is the goal.
