5 Retirement Questions Every Young Adult Should Ask Now

Adulthood is challenging! In the middle of trying to sort out the present, we can forget the future. When we think of retirement, we often envision a far future, but retirement creeps up on us faster than we expect. Before we know it, we are wondering where all the time went.

While you have all the advantages as a young adult, the best time to prepare for retirement is long before it comes. To better help you prepare for a less challenging future, here are five retirement questions you should ask yourself.

Am I in the Right Retirement Scheme?

If you have a pension fund set up, that’s good for you! The next step is to evaluate whether your current retirement plan or pension scheme supports your retirement goal. Is your investment portfolio aligned with your desired timeline, risk tolerance, and future lifestyle?

Choosing the right scheme determines how you will retire and how much flexibility you will have. Now, if you are confused about your current retirement plan or are not even on the retirement plan journey yet, Oak Pensions is here to provide you with helpful resources.

At What Age Do I Want to Retire?

While the official retirement age in many countries is 60 years, you can decide your retirement age. If you choose to retire at age 50 or younger, it is important to have a plan.

This question helps you calculate how many years you have to work, how to balance investments, and how much you want to contribute to retirement funds to achieve your goal.

Read Also: Preparing for Retirement: Your Retirement Checklist

What Does Retirement Look Like to Me?

Retirement does not mean the same thing to everyone. For some, it might mean working significantly fewer hours or taking on flexible part-time roles. For others, it signifies a complete break from the world of work.

Defining what retirement looks like for you, whether that includes traveling the world, babysitting grandchildren, or managing a large farm, shapes how you plan financially. Your retirement vision affects your lifestyle goals, investment strategy, and risk tolerance, so it is important to consider it carefully.

Do I Understand How Inflation Affects My Future Retirement Income?

Considering the present economic state, this is an important question any young adult should ask. Inflation gradually reduces the purchasing power of money over time, meaning that the same amount will buy less in the future.

If your pension savings do not grow at a rate that exceeds inflation, your future retirement income may fall short of meeting your living expenses, even if your balance seems adequate today.

Read Also: Cleaning Up Your Finances: Why You Need a Financial Overhaul

Does My Lifestyle Support the Retirement I Want?

It might seem like a funny question, but it is important to ask. To enjoy retirement to the fullest, you should be in good health, physically, mentally, and financially. While saving and investing are great, your daily habits today play a huge role in shaping your retirement experience.

Are you prioritizing wellness, managing stress, and maintaining healthy living? Remember, the choices you make now can either support or hinder the kind of retirement you are working toward.

Conclusion

After reflecting on these questions, what will you do differently? If you are yet to set up a retirement scheme, perhaps now is the time to get started. If you have a retirement plan, but maybe you have not been actively following up, this is the time to make amends.

Whatever category you belong to, Oak Pensions has the thing just for you - unbeatable pension plans, a team of financial advisors ready to guide you. Visit Oak Pensions to start planning your dream retirement life today.