This old adage has been around for some time now. As far as its origins, some sources believe that it was born out of the military. If you were in the military then you know that I left out a few words that make it more colorful!
In any event, this statement rings true in most aspects of life. When it comes to planning for retirement it couldn't be more true. In the case of retirement I would replace “poor performance” with “retirement dissatisfaction” but then it wouldn't play along with the alliteration of the “P” sounds which would make it much less memorable.
The point of the 5 Ps as it pertains to retirement planning is that having a plan for retirement is paramount. Unfortunately, only 36% of Americans feel confident they will have enough income in retirement. And just as surprising, the average American has only $127,000 saved for retirement, which may only yield $8,355 per year in retirement income.
To assist you in preparing your plan, I've identified the Top 10 questions that you should be thinking about:
- What is my target retirement date?
- What will my retirement daily expense be or how much will I need to live on?
- What are my hobby and travel interests and what will those costs be?
- Will I continue to live in my current home?
- What are my social security benefits, does my spouse qualify for benefits and how can those be maximized?
- What type of retirement benefits will I receive from my employer in retirement—if any?
- What do I have in the line of defined contribution and benefit plans as well as other savings?
- Will I be earning an income during retirement from consulting or another career?
- Do I have any health issues I need to plan for?
- What kind of health care coverage will I have in retirement?