Are You Going to Be OK in Retirement? Here's How to Answer Yes
This financial adviser scoured more than 70 years of retirement research to identify five key risk areas to focus on when planning for retirement.


Planning for retirement is actually pretty simple. Just answer the question in the headline above with a resounding “Yes!” and you’re good to go. The problem is most people can’t do that. There’s always that little question mark at the end. It should really be called the “uncertain mark,” don’t you think?
Answering this question is actually very difficult. It requires asking about new obstacles you didn’t face while working, such as: Did I save enough money? Will I run out of money? When do I start Social Security? Which Medicare plans are best? How would I pay for long-term care? Should I pay off the mortgage? How do I take required minimum distributions (RMDs)? Should I take my pension in payments or a lump sum?
The list goes on and on.
So, how do you know for certain that you’ll be OK in retirement? I think I can help. I’ve scoured over 70 years of retirement research, identified risks in retirement and categorized them into five key areas to focus on. I call it our Smiling Through Retirement Process©.

1. Protect what you’ve saved.
Being retired means you aren’t saving anymore. You’re spending. And when you spend and lose money, bad things happen. For example, if you saved $1 million and need $50,000 a year in income, that’s 5%. If you lose 50%, you now have $500,000, but still need $50,000 a year. That’s not 5% anymore. It’s 10%. That’s too much, and you’ll most likely run out of money.
Safety with reasonable returns wins every time.

2. Have an income plan.
You need to know that you will never run out of money. To do that, you must have a detailed, all-inclusive income plan. It needs to provide certainty that you will never run out of money, no matter how long you live.

3. Work out health care options, including Medicare and long-term care.
Get your Medicare right, and you’re golden. Get it wrong, and you’ll forever pay too much and may not get the level of care you need.
Americans who turned 65 in 2021 have an 83% chance of needing some type of long-term care before they pass away. Not covering this risk is the fastest way to tank your retirement goals. There are several ways to cover this risk, not just one. And it can be covered at low or no cost.
If you don’t use it, you don’t lose it. And if you can’t medically qualify, there’s a way to cover this risk, too.

4. Reduce taxes you owe.
Paying too much in taxes in retirement is enemy No. 1. Who owns your 401(k) or IRA account? Did you say you do? Not quite. Meet your partners, the IRS and your state government (if you pay state income taxes where you live). Additionally, if taxes go up, they own more, and you own less.
Speaking of your-tax deferred money, do you think you’ll be in a lower income tax bracket come retirement? Again, not quite. When you pull that money out (which you are forced to do with required minimum distributions), you will be in the same or higher tax bracket than your working years.
But there’s good news. You can fix this problem. Fixing it means you will pay less taxes in retirement, have more money to spend and leave more money to your kids, mostly tax-free!

5. Put together an estate plan.
Everybody needs an estate plan, whether or not you have lots of assets. An estate plan controls things that happen if you become disabled or die.
If your disability is long term — and you don’t have an estate plan, or you have an improperly designed estate plan — the person you name to take care of your money can use your money only for you. So, if it’s your spouse, they cannot use your money for themselves, your kids or anything else. If they do, they can be removed and replaced with an attorney. Your family would pay big, unnecessary legal fees.
If you don’t have an estate plan, or it’s improperly designed, your money can end up in the wrong people’s hands. For example, if your kid gets divorced, half of the money you left for them and your grandkids will most likely go to their ex-spouse. Or, if your kid is at fault in a serious car accident and is sued, all your money could go to the victim’s family.
These terrible situations, and many others, can be avoided with a properly designed and implemented estate plan.
If you address each of the above areas going into retirement, you have done everything possible to ensure you’ll be OK for the rest of your life. Seeking guidance from a qualified financial professional and estate attorney is a great place to start.
Here’s to you living a Happily Ever After Retirement©!
RELATED CONTENT
Five Tax Moves Retirees Should Consider Before Dec. 31
Nervously Nearing Retirement? Four Do’s, Four Don’ts and One Never
To Create a Happy Retirement, Start With the Three Ps
Why Are You Still Working?
Five Common Retirement Mistakes and How to Avoid Them
The appearances in Kiplinger were obtained through a public relations program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Investment advice is offered through APO Financial Services, LLC (“APO”) 10155 Westmoor Drive, Suite 175, Westminster, Colorado 80021-262, an investment adviser registered with the Securities and Exchange Commission. Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services offered or that its personnel possess a particular level of skill, expertise or training. Important information and disclosures related to APO are available at https://apofinancial.com. Additional information pertaining to APO’s registration status, its business operations, services and fees, and its current written disclosure statement is available on the SEC’s investment adviser public website at https://www.adviserinfo.sec.gov.
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With more than 12 years of experience in the financial services industry, John is a nationally recognized financial educator, speaker and author of two books. He specializes in helping people leave legacies, not just of money, but of their values and influence in their communities.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summer
The Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?
Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last Long
According to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond Investors
High-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance Agent
Your insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.
-
Two Estate Planning Issues You Should Never Overlook
This estate planning attorney explains why proper asset titling and beneficiary designations make a big difference when it's time to transfer your wealth.