Passive Income Need Questionnaire for retirees

  Theme 1: Income Security & Longevity Risk

1. Do I worry about the possibility of outliving my savings? (Y/N)
2. Does my primary retirement income (e.g., pensions, Social Security) fully cover my essential monthly expenses? (Y/N)
3. Am I concerned about inflation reducing my purchasing power over the next 10-20 years? (Y/N)
4. Have I had to withdraw from my investment principal (not just earnings) to cover living expenses? (Y/N)
5. Does a significant market downturn cause me anxiety about my financial stability? (Y/N)

Theme 2: Lifestyle & Discretionary Spending

1. Does my current income allow me to maintain my desired lifestyle (e.g., travel, hobbies, dining out) without constantly worrying about my budget? (Y/N)
2. Are there large, anticipated expenses in the future (e.g., helping grandchildren, home repairs, medical costs) that I am not fully confident I can cover? (Y/N)
3. Would I like to have extra "guilt-free" money for discretionary spending without impacting my core nest egg? (Y/N)
4. Do I want to leave a specific financial legacy for my family or a charity? (Y/N)
5. Would a reliable source of extra income give me greater peace of mind to enjoy my retirement? (Y/N)

Theme 3: Approachability & Risk Tolerance

1. Am I comfortable with the idea of using a portion of my savings to create an income stream, understanding there may be some initial setup? (Y/N)
2. Am I interested in generating income from assets or skills I already have (e.g., a spare room, hobby, or lifetime of experience)? (Y/N)
3. Am I looking for a low-stress, low-time-commitment way to supplement my income? (Y/N)
4. Would I prefer an income stream that has the potential to grow, rather than one that is fixed? (Y/N)
5. Am I open to learning new, simple ways to manage money in retirement? (Y/N)

How Retirees Should Interpret Their Answers

Scoring: A "Yes" answer in Theme 1 and Theme 2 indicates a strong need for supplemental passive income.

• High "Yes" in Theme 1 (Income Security & Longevity Risk): This is the most critical signal. It shows a direct need for financial safety. Passive income can act as a crucial buffer to protect your principal, hedge against inflation, and mitigate "longevity risk" (the risk of outliving your money).

• High "Yes" in Theme 2 (Lifestyle & Discretionary Spending): This indicates that while you may be covering the basics, there is a need for enhanced lifestyle freedom. Passive income can provide the funds to fully enjoy retirement without the fear of overspending your core savings.

• High "Yes" in Theme 3 (Approachability & Risk Tolerance): This shows you are mentally and financially ready to explore options. Your need is not born of desperation but of a desire for intelligent, proactive management of your retirement years.

Summary for Retirees:

In summary, for a retiree, the need for passive income is about creating a predictable, durable cash flow that complements fixed-income sources like Social Security and pensions. It's a tool for reducing financial anxiety and ensuring that your retirement years are as secure and enjoyable as possible.