Key Retirement Questions Answered by Ben Loughery, CFP®, CRPC™

Planning for retirement can feel like uncharted territory. Critical decisions, such as when to take Social Security benefits, how to cover healthcare costs, and how to adjust your investment strategy, can have lasting consequences. This makes asking the right questions and knowing what to consider essential elements to building the retirement you want.

To illustrate these important retirement considerations, we spoke with Ben Loughery, CFP^®, CRPC^™, founder of Lock Wealth Management in Atlanta, Georgia. With years of experience guiding clients through retirement planning, Loughery offers valuable insights into how to approach this pivotal life stage with confidence and clarity.

Q&A with Ben Loughery, CFP^®, CRPC^™

In our interview with Loughery, we posed several common and important questions that clients may ask about retirement planning. These topics include Social Security benefits, financial and emotional readiness to leave the workforce, and how a financial advisor can help clients achieve their goals. His responses offer a thoughtful perspective for those nearing retirement and individuals planning for the long term.

Below are our questions along with Loughery’s response for each one:

When is the best time to take Social Security to maximize my benefits?

Loughery: “Deciding on when to claim Social Security is one of the most important retirement decisions. You can start benefits as early as age 62 but waiting until your full retirement age, which is typically 66 to 67 or even delaying until age 70 can significantly increase your monthly check. Each year you delay, your benefits grow by about 8% per year due to delayed retirement credits. The right timing of when to take out depends on factors like your health, life expectancy, financial needs, and other sources of income.”

How can someone know whether they should keep working or retire?

Loughery: “Many pre-retirees wonder whether they should keep working or if they have enough savings to retire comfortably. We would need to look at your projected expenses in retirement, such as for housing, healthcare, travel, etc. Next, we’d look at your guaranteed income sources, like Social Security, pensions, and any annuities. Additionally, we would consider your healthcare insurance coverage or Medicare coverage at your age 65 eligibility. Regardless of if you are over or under 65, we would be able to help you find the best options.”

How expensive will healthcare be in retirement and how can they plan for it?

Loughery: “For early retirees, we will explore your unique needs which may involve affordable care act compliant plans, off-market insurance plans, healthcare sharing plans, dental, vision, and accident plans, or leveraging COBRA, retiree benefits. If you are 65 and above, we will help you get set up with Medicare.

“It is important to know your priorities, such as what matters most to you and your healthcare coverage, whether it be prescription drug coverage, dental, vision, hearing, protection from out-of-pocket cost, preventative medical care, and even knowing your preferred providers. Knowing your medications, current plan information, and income will help guide us to get to the plan choice for you. Regarding your income, you may qualify for tax credits that can reduce your monthly health insurance premium. Your modified adjusted gross income (MAGI) may also have an impact on your Medicare part B premium.”

How should clients adjust their investment strategy as they approach retirement?

Loughery: “With regards to your investment strategy, we will look at different scenarios and what will give you the best outcome, depending on your unique financial situation. We would manage sequential return risk, which means that we would want to ensure we don’t withdraw too much during a market downturn. By withdrawing less during bad years and relying on other savings, we can give your investments time to recover and this ultimately helps your money last longer and reduces the risk of depleting retirement too soon.”

How can a financial advisor help clients avoid costly mistakes before and during retirement?

Loughery: “A financial advisor helps retirees navigate key financial pitfalls, such as claiming Social Security too early only if they didn’t need to, which reduces lifetime benefits. Mismanaging Roth conversions can potentially trigger unnecessary tax burdens. A financial advisor can help determine the optimal time to convert traditional retirement funds into a Roth IRA ensuring tax efficient withdrawals in retirement.”

What are some ways clients can emotionally prepare for retirement?

Loughery: “Retirement isn’t just a financial shift; it’s also a major lifestyle change. Some ways to ensure a smooth transition include defining your purpose, whether through hobbies, volunteering or even part-time work. Building a social network, such as staying engaged with friends, family, or community groups and creating some type of structured daily routine can help replace the work schedule. Financial security is important, but a fulfilling retirement also requires social, emotional, and mental well-being.”

What are some final thoughts on retirement that people should consider?

Loughery: “Retirement planning is not a one-size-fits-all and there are many moving parts to consider. A well thought out approach that includes Social Security timing, investment adjustments, healthcare planning, and emotional preparation can make a huge difference. Consulting a financial advisor can help retirees avoid mistakes, optimize strategies, and ensure a fulfilling retirement lifestyle.”

Conclusion and Key Takeaways

While a financial milestone, retirement is a phase of life that requires careful planning and thoughtful consideration. As Loughery’s responses demonstrate, asking the right questions and working with a financial advisor can bring you closer to your goals by developing a comprehensive plan tailored to your unique needs.

Beyond the financial aspects, Loughery emphasizes that retirement is a major lifestyle change that requires emotional readiness to transition into. It’s essential to cultivate the life you want through finding purpose, either socially or through daily activities that replace work.

Loughery also highlights that the advisor-client relationship is a partnership. By clearly communicating your objectives and concerns, a professional can guide you toward strategies that help meet your retirement goals. Since elements of a retirement plan—such as your budget, projected expenses, and income—are unique to each person, working closely with a professional ensures that your plan is aligned with your needs and aspirations.

Importance of a High-Quality Financial Advisor

The expertise of a qualified financial advisor is an invaluable resource as you plan for retirement. They can work with you to set attainable goals, manage income sources, and tackle notable issues, such as when to take Social Security or paying for healthcare. It’s critical, however, to find a professional that has the necessary experience, expertise, and ethical standards to best serve you.

As you look for a financial advisor to plan for your golden years, we recommend favoring those with planning- and retirement-related titles. To obtain these prestigious certifications, professionals must typically pass a rigorous set of requirements and adhere to a fiduciary duty at all times. Examples include:

• Certified Financial Planner (CFP)
• Chartered Financial Consultant (ChFC)
• Chartered Retirement Planning Counselor (CRPC)
• Retirement Income Certified Professional (RICP)

If you need help finding a high-quality financial advisor, consider taking advantage of this free matching tool. After a brief quiz regarding your financial goals and current situation, it’ll pair you with a vetted fiduciary professional who suits your needs.

Retirement planning, as Loughery explains, isn’t a “one-size-fits-all” or one-time task. Rather, it requires specialized and ongoing advice to ensure you’re staying on track toward your goal. Professional guidance from a financial advisor can help you gain the clarity and expertise needed to tackle the obstacles that come your way and get closer to the retirement you envision.