By Dr Dave Schalow, PhD, CLU, ChFC, CFA, CFP

Financial Success | November 1, 2026

Retirement can seem distant until it starts to feel close. Work, family, and everyday expenses can take priority for years. Then you look up and realize that the date you had in mind is approaching.

A useful response is to begin planning with the information you have today. Three questions can help turn a vague concern into a practical discussion.

1. WHEN WOULD YOU LIKE TO RETIRE?

Write down a target date and the number of years between now and then. Five years calls for a different conversation than twenty years.

Also decide what retirement means to you. Do you want to stop working entirely, reduce your hours, change the kind of work you do, or build a schedule with more freedom? The answer affects both the income you may have and the life you are planning to fund.

A birthday alone doesn't tell you whether the plan is financially ready. Treat the date as a goal to test against your resources and responsibilities.

2. HOW MUCH MONTHLY INCOME WILL YOU NEED?

Describe the lifestyle you want, then build an expense estimate to support it. Include routine household spending and less frequent costs such as repairs, travel, and replacing a vehicle. Consider health care, taxes, and the possibility that costs will rise over time.

Next, list the income sources you reasonably expect. Use current statements and benefit estimates, and check when each source could begin. Separate a pension or other expected income stream from an investment account that still needs a withdrawal plan.

For a simple hypothetical example, suppose you estimate needing $8,000 a month and expect $3,000 from identified income sources. The remaining $5,000 is a planning gap. That arithmetic is a starting point; it isn't yet a complete retirement plan.

3. WHAT IS YOUR PLAN TO CLOSE THE GAP?

Compare your present assets, expected contributions, and time available with the income you will need. Examine several possibilities rather than relying on one optimistic return assumption.

The choices may include saving more, changing spending, adjusting the retirement date, or considering some continued earned income. Each choice has practical consequences, so discuss them in terms of your own circumstances.

Avoid turning a single assumed investment return into a promise of sustainable retirement income. Returns vary, withdrawals affect the balance, and the sequence of good and bad years can matter. A larger account doesn't remove the need for a thoughtful spending and investment plan.

PUT THE QUESTIONS TO WORK

Gather your account statements, income estimates, and spending records. Write your answers to the three questions. Mark the numbers that are known and the ones that are assumptions.

Then review the plan with an appropriately qualified financial professional when needed. Ask what would happen if expenses were higher, returns were lower, or retirement lasted longer than expected.

​You don't have to solve every uncertainty before starting. You do need a clear picture of the next decision. Begin with the date, the income need, and a realistic plan to connect the two.