Do you need to fear retirement?

Jennifer Palakiko.

If you're planning to retire in a few years, are you looking forward to it? Or are you somewhat apprehensive? Are you asking yourself: "What sort of retirement can I afford?"

It's a good question - because the answer can make a big difference in your ability to enjoy life as a retiree.

And retirement can indeed be enjoyable, exciting and fun. Consider this from a recent survey by Edward Jones and AgeWave: A majority of respondents said retirement should be looked at as a whole new chapter of life, and not just a time for rest and relaxation. In other words, people are viewing retirement as a chance for new experiences and new opportunities, rather than a time to simply wind down. But if you're going to make the most of your retirement - which could last two or even three decades - you need to be financially prepared.

This preparation can involve many steps, but here are some of the key ones:

• Decide what your retirement lifestyle will look like. How you choose to spend your retirement years can make a big difference in the financial resources you'll need. For example, if you plan on traveling the world, you might need more income than if you were to stay close to home and pursue your hobbies. If you can envision your retirement lifestyle and estimate how much money you'll need to support it, you can help reduce some of the uncertainties you might face once you do retire.

• Review your income sources. During retirement, you'll likely need to draw on all your income sources, so it's a good idea to know what you'll have available, such as your IRA, 401(k) and other investment accounts. You'll also need to decide when to take Social Security - if you wait until your full retirement age (probably between 66 and 67), you'll get much larger monthly benefits than if you started taking them at 62. And here's another variable: earned income. Even if you've retired from your career, you might, if you desire, use your acquired skills in a consulting or part-time position. The more you can earn, the less you may have to withdraw from your investment accounts and the better position you'll be in to delay taking Social Security.

• Consider adjusting your investment portfolio. For most of your working years, you may have invested mostly for growth - to increase your assets as much as possible. But growth-oriented investments are also, by nature, riskier, so when you retire, you should review your portfolio to determine whether you need to move it toward a more conservative position. Also, more conservative investments may provide more current income in the form of interest payments. However, even in retirement, you may need some investments with growth potential if you want to keep ahead of inflation.

Retirement is certainly a major milestone in your life - and adjusting to it can take some time. But there will be much less to fear - and much more to enjoy - if you've done what you can to prepare yourself financially.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC.