It is now proven that the ability to enjoy retirement will depend, to a great extent, on how well people have prepared financially. It’s reassuring to know that people can meet the expenses of the lifestyle people choose and that people can meet unforeseen expenses as well. While a financially secure retirement does not guarantee fulfillment, it builds a foundation that frees people from worry and concern. Therefore, people can get involved with things they enjoy and that will bring them fulfillment in their later years. It is fairly easy to assess their current financial condition. However, it becomes more difficult the further into the future they must look. There are a number of unpredictable factors to consider: the rate of inflation, changes in tax laws, their health, how long they will live, return on investments, and health care costs. To deal with these uncertainties, people need to make some assumptions based on either historical data or statistical averages. Then they need to update their plans from time to time as new information becomes available. It is important to recognize that their plans are only as accurate as the assumptions that go into them—and they are never final.

This article guides through analysis of their current and post-retirement financial
conditions. It is not intended to replace the service of a qualified expert. Rather, it
provides a general overview and prepares people to meet with a financial planner.