Are You Ready for Retirement?

So, if you retire with $500,000, you might begin by withdrawing around $20,000 to $25,000 in the first year, then adjust over time.

Of course, this is not a guarantee, and it does not mean you’ll never touch the principal. Your actual withdrawal rate should depend on your age, health, investment mix, inflation, market conditions, and whether your essential expenses are covered by guaranteed income.

The danger is assuming you can withdraw 8%, 10%, or even 12% from your portfolio every year without consequences. For most retirees, that’s not a plan. It’s a countdown.

Prepare for Health Care Costs

Medicare is a blessing, but it doesn’t cover everything. Retirees may still face premiums, deductibles, co-pays, prescription costs, dental care, vision care, hearing expenses, and more.

Long-term care is a separate issue altogether.

Recent estimates suggest that a 65-year-old retiring today may need well over $170,000 for health care costs throughout retirement—and that does not include long-term care. For a married couple, health care becomes a major planning item.

That’s why it’s important to prepare in advance and not assume Medicare will cover every need.

Understand Social Security

For many retirees, Social Security will be one of the largest sources of guaranteed income.

You can claim benefits as early as age 62, but doing so can permanently reduce your monthly benefit by as much as 30%. Delaying past full retirement age until age 70 can increase your benefit by 8% for each full year you wait—up to 24% if your full retirement age is 67.

Of course, delaying is not always the right answer. Health, family history, income needs, marital status, and work plans all matter. But because this is often a permanent decision, it’s worth looking carefully before you claim.

Review Your Investment Allocation

As you approach retirement, your portfolio may need to become more conservative. But that doesn’t mean moving everything to cash.

Retirement may last 20 or 30 years, and inflation can quietly erode your purchasing power over time. A wise allocation should balance the need for stability with the need for continued growth.

Retirement Is Not the End of Stewardship

Finally, remember that retirement is not the end of stewardship.

That’s a richer vision than simply withdrawing from work and responsibility. Retirement is not about drifting. It’s about faithfulness in a new season.

So yes, check the numbers. Know your savings target. Build a realistic spending plan. Prepare for health care. Understand Social Security. Review your investments.

But also ask, “Lord, what fruit do You want to grow in this season of my life?”

On Today’s Program, Rob Answers Listener Questions:

• I’ve worked at qualifying universities for nearly 10 years under Public Service Loan Forgiveness, but deferments and forbearances kept me from reaching 120 qualifying payments. I now qualify for the buyback program and could pay for about 15–17 missed months to reach forgiveness sooner. Should I do the buyback now or keep making regular payments until I reach 120?
• I have a home equity loan at 6% with a $32,000 balance and eight years left, and a car loan at 6.09% with a $35,000 balance and six years left. Which should I focus on paying off first?
• My job is ending soon, and I have only a small amount saved for retirement. I’m about to receive a $16,000 settlement. Given my situation, how should I use or invest that money?
• I’ve been with my local bank since 1996, but it’s been bought out three times. How do I know when it’s time to switch banks, and what should I look for in a new one?
• I’m turning 73 this August and will need to begin taking RMDs from my IRA based on the end-of-year 2025 balance. I’d like to use Qualified Charitable Distributions to reduce taxable income. When should I make the QCDs so they count toward my RMD?
• I’m trying to understand fixed indexed annuities. Are they a good option, and what should I consider before using one as an investment?

Resources Mentioned:

• Faithful Steward: FaithFi’s Quarterly Magazine (Become a FaithFi Partner)
• Christian Credit Counselors
• Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob West
• Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor® (CKA)
• FaithFi App