{"id":162,"date":"2026-01-10T01:42:32","date_gmt":"2026-01-10T01:42:32","guid":{"rendered":"https:\/\/whiteoakwealtherie.com\/ideas\/?p=162"},"modified":"2026-01-10T01:42:32","modified_gmt":"2026-01-10T01:42:32","slug":"5-questions-you-need-to-answer-5-years-before-retirement","status":"publish","type":"post","link":"https:\/\/whiteoakwealtherie.com\/ideas\/5-questions-you-need-to-answer-5-years-before-retirement\/","title":{"rendered":"5 Questions You Need to Answer 5 Years Before Retirement"},"content":{"rendered":"

By Michael Nedreski<\/span><\/i><\/p>\n

Retirement<\/span><\/a> is a huge milestone, full of excitement, questions, and uncertainties. For many who are approaching this next chapter, asking the right pre-retirement planning questions can make a world of difference. In fact, a recent survey found that <\/span>66% of Baby Boomers<\/span><\/a> (1) feel less prepared for retirement than they\u2019d like to be.<\/span><\/p>\n

The best way to reduce that uncertainty? Planning ahead. As you get closer to retirement, take the time to consider these 5 essential questions to feel more confident, in control, and ready to embrace the future.<\/span><\/p>\n

1. How Will I Maintain a Consistent Cash Flow in Retirement?<\/span><\/h2>\n

On average, Social Security covers <\/span>roughly 39% of one\u2019s income in retirement<\/span><\/a>.<\/span> (2) So, where will the other 63% come from? It\u2019s essential to have a proper cash flow plan for retirement so you can maintain a consistent income. There are a few potential sources of retirement income, including working part-time, retirement accounts, pensions, fixed annuities, savings, and other investments. Looking at all these income sources, you\u2019ll want to determine if they\u2019ll cover your needs.\u00a0<\/span><\/p>\n

If your projected expenses don\u2019t match your income and savings, you\u2019ll either need to reconsider your expenses or increase your retirement income. Consider working part-time, contributing more to your retirement accounts, and developing a strategy to generate more income from your retirement portfolio. This can be done by ensuring your asset allocation still meets your risk tolerance and time horizon, and investing in assets that will diversify your income stream.<\/span><\/p>\n

2. How Will My Investments Hold Up in Various Market Conditions?<\/span><\/h2>\n

Market volatility can mean the difference between living comfortably in retirement or just scraping by. Facing a decline in the early years of retirement can be disastrous. Considering those who retire during or near a bear market are <\/span>more likely to run out of money<\/span><\/a>, (3)<\/span> it is crucial to understand how your investments may react during an economic downturn.<\/span><\/p>\n

It\u2019s important to regularly analyze your portfolio to ensure that it lines up with your risk level and that you haven\u2019t become too reliant on any one asset category. It may be time to diversify your portfolio (if you haven\u2019t already), rebalance, and utilize a Monte Carlo simulation to stress test your plan. This can help you see how your portfolio will react to various market conditions.<\/span><\/p>\n

3. When Should I Claim Social Security Benefits?<\/span><\/h2>\n

Social Security benefits can be claimed between the ages of 62 and 70; however, the timing of benefits will impact the total amount received.\u00a0<\/span><\/p>\n

Early Retirement<\/span><\/h3>\n

You can start receiving benefits as early as 62, but your monthly benefit will be lower than if you waited longer. Your basic benefit is reduced by a fraction of a percent for each month you begin receiving benefits prior to full retirement age. Retiring early can permanently <\/span>reduce your benefit by up to 30%<\/span><\/a>. (4)<\/span><\/p>\n

Full Retirement Age<\/span><\/h3>\n

Your full retirement age (FRA) changes based on the year you were born. FRA is 66 for those born between 1943 and 1954 and increases by two months for every year after that you were born until it settles at age 67 for those born in 1960 or later. If you wait until you reach full retirement age to begin collecting your Social Security benefits, you will receive your full benefit amount.<\/span>\u00a0<\/span><\/p>\n

Delayed Benefits<\/span><\/h3>\n

If you\u2019re still working or don\u2019t need the money immediately, you can delay receiving your benefits. <\/span>Your benefit will increase by 8% for each year that you delay<\/span><\/a>.<\/span> (5) You cannot delay and increase your benefit indefinitely, though. Once you reach age 70, the amount of benefits you receive will not increase any further.\u00a0<\/span><\/p>\n

Be sure to reference your Social Security statement in the years leading up to retirement. This important document tells you a lot about your expected benefits, so it can help you in your decision-making process.\u00a0<\/span><\/p>\n

In general, <\/span>t<\/span>he best time for you to claim your benefits depends on your personal situation and health. If you expect to live longer than average, your overall lifetime benefit will be greater if you delay claiming your benefits to increase your benefit amount. If the opposite is true and you see little chance of making it into your mid-80s, you would likely receive a greater lifetime benefit by taking it sooner, even though it would be a smaller monthly payment.\u00a0<\/span><\/p>\n

4. Am I Properly Utilizing Tax-Reduction Strategies?<\/span><\/h2>\n

As the saying goes: \u201cIt\u2019s not how much you make, but how much you get to keep that matters.\u201d This is especially true as you approach retirement. Once your income sources become fixed, <\/span>managing and minimizing your taxes<\/span><\/a> should be your top priority. If you haven\u2019t already, consider working with a financial advisor to review your potential options, including:<\/span><\/p>\n