Retirement Quiz: Are You Prepared for Retirement?

Figuring out when to retire can be challenging. It isn’t always easy to know what the right time is. And, of course, you need to make sure you’re financially prepared for retirement. You might be saving and investing diligently, but do you have enough money to cover your expenses and live comfortably in your golden years?

Taking a retirement quiz can help you determine the best time to retire. It can show you where you are in terms of saving for the future, and it can help you identify an action plan for reaching your retirement goals.

Get started with this “are you prepared for retirement” quiz. And then, after taking the retirement quiz, read on to find out more about saving for retirement.

You’re on Track for Retirement

Your retirement quiz answers indicate that you’re well on your way to planning and preparing financially for retirement. You’re maxing out your 401(k) and taking advantage of your employer’s matching contributions, you’re contributing to another retirement account like an IRA, and you’re working diligently to pay off your debt. You even have a financial and lifestyle plan that maps out what you want to do in retirement and how you’ll pay for it.

Nice work! Now just keep it going.

You’ve Made a Start But You Still Have Some Work To Do

When it comes to retirement planning, you’re in fairly decent shape, according to your “are you ready to retire?” quiz answers, but there’s more you can do to maximize your savings.

For one thing, contribute the maximum amount to your 401(k) if you can. This will help you put away more funds for your retirement years. After that, if you have money left over, open an IRA to save even more. You can choose between a traditional and Roth IRA, depending which type makes the most sense for your situation. Both IRAs may have some tax advantages.

In addition, work at paying off your debt, including your mortgage, student loans, and credit card debt. You don’t want that hanging over your head and dragging down your budget in retirement.

And finally, map out your retirement lifestyle as well as the retirement expenses you’ll likely face. Once you have a retirement budget, you’ll know how much you need to save to live contentedly in your golden years.

You Need to Get Serious About Saving

Your quiz answers show that you’ve got real work to do. While you’ve clearly thought about retirement and know you need to save for it, the financial obligations you’re facing now are your main concern.

If it’s any comfort, you’re not alone. While 35% of Americans say they want to retire between the ages of 60 and 69, according to a recent SoFi survey, only 37% of them say they’re actually on track to meet that goal.

However, it’s vital to take action now to help secure your future. Start by creating a budget and sticking to it. This will help you keep tabs on your spending so that you can avoid taking on more debt.

And speaking of debt, work on a plan to consistently pay off what you owe. There are different debt payment strategies, such as the debt avalanche and snowball methods. Decide which one makes the most sense for you and start using it.

At work, sign up for your company’s 401(k) if you haven’t already. Contribute enough to the 401(k) to get your employer’s matching contribution — otherwise, you’re essentially forfeiting free money. With a 401(k), money is automatically taken from your paycheck and deposited into your account, so you don’t even have to think about it. Having at least one retirement account will help you start saving up for your retirement years.

The Takeaway

Deciding when to retire is one of the most important life decisions you’ll make. And determining if you’re financially prepared for this time of your life is vital. A retirement quiz can help you figure out if you’re on track for your retirement goals or if you still have work to do. It’s a good way to assess where you are financially and what you need to do to secure your financial future.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest with as little as $5 with a SoFi Active Investing account.

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Photo credit: iStock/damircudic

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