Assessment

Here are 25 affirmative questions. Rate yourself as a 0 if the positive answer doesn’t resonate with you. Give yourself a half-point if it feels right to your present status, but it’s not a full “yes.” And give yourself 1 point per statement if you feel a full-body yes.

A) FINANCIAL FOUNDATION: Building Your Retirement Nest

Most retirement planning focuses solely on finances, but even here, many professionals miss critical elements. Beyond just having a 401(k) or other social plan or pension, true financial readiness means having multiple streams of income and a comprehensive strategy that can weather any economic storm.

Key Areas to Evaluate:

Required Retirement Income Calculation

Research shows that traditional retirement calculators often underestimate actual needs by 20-30%. And many people don’t make any estimation at all.

Have you calculated your required retirement income beyond basic expenses, to include lifestyle goals, healthcare costs, mobility solution, and emergency funds?

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0.5

1

Debt Reduction Strategy

A clear path to becoming debt-free before retirement provides maximum flexibility and reduces stress

Do you have a timeline for eliminating high-interest debt or all debt, while maintaining investment growth?

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0.5

1

Investment Diversification

The most resilient portfolios include a mix of traditional retirement accounts, personal investments, and possibly real estate or business interests.

Are your investments spread across multiple vehicles beyond your pension/401(k)/company retirement plan?

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0.5

1

Multiple Income Streams

Good passive income sources will continue providing returns regardless of market conditions. This could include rental properties, dividend stocks, intellectual property or other non-correlated assets.

Have you developed passive income sources that will continue providing returns regardless of market conditions?

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0.5

1

Portfolio Management

The right mix becomes increasingly important as you approach retirement.

Is your investment strategy properly diversified, actively managed, and regularly rebalanced to match your risk tolerance and timeline?

0

0.5

1

B) HEALTH & WELLNESS: Your Most Valuable Asset

Without good health, no amount of money can ensure a fulfilling retirement. Yet many successful professionals postpone health considerations until it's too late.

Key Areas to Evaluate:

Exercise Routine

Regular physical activity isn't just about longevity - it's about maintaining independence and vitality.

Have you established a sustainable fitness and regular exercise routines that you actually enjoy?

0

0.5

1

Eating Habits

Your nutrition should comply with the healthy eating recommendations, and possibly needs to change with age.

Have you adapted your diet to support both current good nutrition needs and long-term health goals?

0

0.5

1

Sleep Quality

Quality sleep is increasingly important for overall health, cognitive function, and emotional resilience.

Are you consistently getting 7-8 hours of restful sleep?

0

0.5

1

Stress Management

Chronic stress accelerates aging and compromises immunity.

Do you have effective tools for managing both daily and major life stressors?

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0.5

1

Health Assessment

Regular comprehensive health screenings can catch potential issues early.

When was your last full physical and health risk assessment?

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0.5

1

C) SOCIAL CONNECTIONS: Your Support Network

Research shows that strong social connections are as important for longevity as not smoking. Yet many successful professionals find their social networks shrinking after leaving work.

Key Areas to Evaluate:

Family Relationship Planning

Have you created strategies for deepening family bonds and maintaining meaningful connections across generations?

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0.5

1

Non-Work Friendships

Strong friendships that aren't dependent on your professional role become crucial for maintaining identity, purpose, and happiness in retirement.

Do you have strong friendships that aren't dependent on your professional role?

0

0.5

1

Community Involvement

Are you engaged in community activities that provide both social interaction and a sense of contribution?

0

0.5

1

Social Hobbies

Have you developed interests that naturally create opportunities for meeting new people and maintaining an active social life?

0

0.5

1

Diverse Relationships

Relationships diversity (people of different ages, opinion groups, and perspectives) helps maintain mental flexibility and cultural relevance.

Do you regularly interact with people of different ages and perspectives?

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0.5

1

D) LIFE PURPOSE & IDENTITY: Your Reason for Being

The most overlooked aspect of retirement planning is preparing for the psychological transition from a work-centered identity to a new sense of purpose.

Key Areas to Evaluate:

Post-Retirement Goals

Have you identified meaningful objectives that excite you beyond your career achievements?

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0.5

1

Non-Career Interests

Interests / hobbies that will meaningfully fill your time in your Third act are crucial for your mental and physical health. You should develop them in advance.

What passions and interests have you developed that aren't tied to your professional identity?

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0.5

1

Activity Portfolio

Creating a diverse mix of activities that provide mental stimulation, physical activity, and social connection, is important for retirement. This may include volunteering, helping others.

Have you thought of a diverse mix of activities for your Third act?

0

0.5

1

Purpose Beyond Work

Articulating your purpose once work purpose will stop is vital.

Can you clearly articulate what will make your life meaningful once your career is no longer central?

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0.5

1

Daily Structure

Once work will no longer provide you with structure, routines and habits, you will have to develop new ones, for your retirement days, months, years.

Have you thought about how you'll structure your time to maintain purpose and progress without the framework of work?

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0.5

1

E) TRANSITION PLANNING: Your Bridge to the Future

A successful retirement doesn't happen overnight. The most fulfilled retirees carefully plan their transition well in advance.

Key Areas to Evaluate:

Phased Approach

Have you considered gradually reducing work commitments to test and adjust your retirement lifestyle?

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0.5

1

Mental Stimulation

What will replace the intellectual challenges that your work currently provides?

0

0.5

1

Your work currently provides you with the (substantial part of) your mental stimulation. This will have to be replaced for you to thrive.

Partner Alignment

Have you had detailed discussions with your spouse/partner about shared and individual retirement goals and plans? (copy)

0

0.5

1

Cognitive Maintenance

Do you have specific strategies for maintaining mental sharpness and continuing to learn and grow in your retirement?

0

0.5

1

Time Management

Have you created a flexible framework for how you'll spend your time in ways that feel both productive and enjoyable?

0

0.5

1

Full Name

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Your information is 100% confidential

The Third Act Retirement

Readiness Assessment

By Milan Schwarzkopf