Questions to guide retirement strategy

Retirement might be decades or days away for you. Maybe you have a strategy for retirement, or maybe your plan is to hope it'll be fine.

Before you reach retirement age — and ideally when you're in your 50s — you need to answer three basic questions, according to Bhaj Townsend, founder and president of Legacy Plus based in Kirkland.

• Where am I going to live?

Housing is generally the largest expense for people even after retirement. If you're not going to live in your own home, will you live in a place that has rent guarantees on it?

"With many apartments being converted to condominiums, it's also important to consider whether the building you plan to live in could potentially be torn down," said Townsend.

• How much money will I need to live a comfortable lifestyle?

Instead of looking at the calendar to determine when you should retire, look at your portfolio. If you have enough money set aside to allow you to receive at least 70 percent of your current income for 20 years, then you are able to retire.

And don't rely on Social Security to pay all your expenses.

"Age 65 was considered old when Social Security was introduced in the 1940s," she said. "Now most people can expect to have between 15 and 20 years ahead of them after retirement."

• What are my health-insurance needs?

In retirement, staying healthy can mean more visits to the doctor's office for preventive tests and routine checkups.

"Often as we grow older we need more costly prescriptions and medical treatments," Townsend said. "That's why having health insurance is extremely important."

Will Medicare be enough to cover your medical needs? If you've had health issues it might be best to keep working and remain on your company's insurance plan.