Many Americans are concerned about how much money they will have left when they retire. While you may have a good income now, your current savings probably won’t last long after you retire if you don’t have a savings plan in place. The following questions are things to ask yourself when starting a retirement plan or determining if your current plan will suffice.

How much longer do I have until retirement and how long should my savings last beyond that point? The first thing you need to determine is when you would like to retire. Subtract your current age from your desired retirement age to find out how many years you have to save. Now you need to figure out how long you’ll need to use those retirement savings. Since no one knows exactly how long you’ll live, plan to live to be 100; You will probably have a lot of savings in retirement. All of this is important information to know when you start planning for your retirement. Some plans offer a lifetime of income, while others only last until the money you put in and the interest you earned run out.

How much money can I afford to set aside each month for retirement? This is where it comes in handy to have a budget. If you don’t already have one, you should start one. No matter how old you are, the time to save is now. The longer you wait to start saving, the less money you’ll have for retirement. Estimate how much you think you can afford to save each month and how much you will have when you retire. If you have 20 years until retirement and save $50 a month for that entire period, you’ll have $12,000 saved when you retire. That amount is not going to be enough to last you until retirement, so you should plan to save more per month in the future as your income increases.

How much risk am I willing to take? This is a very important question when choosing a retirement plan. Some 401(k), IRAs, and other retirement plans are invested in the market, so you risk losing money if the market goes down. Other plans, like fixed annuities and indexed universal life, are market risk free, so you can earn interest without risking your money in the market. You may need to speak with a financial professional to determine how much risk you are comfortable with.

What if I need access to money ahead of time? When choosing a retirement plan, it’s always good to think about emergencies that may arise. If you get sick or injured, you may have medical bills to pay, or maybe you’d like to help your child pay for college. Many retirement plans have restrictions and penalties for accessing your money early, so make sure you understand the restrictions and fees your retirement plan offers. Indexed universal life insurance policies allow you to borrow, while IRAs, 401(k)s, annuities, and other plans may not be as flexible.

Do I want to leave an inheritance for my family when I’m gone? Many people would love to leave money for their families, but never really make a plan to do so. Some retirement plans can be transferred to your loved ones tax-free when you die, while others cannot. If you choose a retirement plan that doesn’t allow you to transfer your money, you may want to consider purchasing a life insurance policy so your loved ones can pay your final expenses and have an inheritance.

Retirement planning is one of the most important financial decisions you’ll ever make, yet many people don’t take the time to consider all of their options to determine the best plan for them.