How Much Money Will I Need When I Retire?
Retirement is one of those subjects that relates to everyone on Earth, but could look different for everyone. There’s no right or wrong way to save for retirement – the important thing is that you just save and let your money grow.
We often get asked from clients, “How much money will I need when I retire?” While we don’t have an exact answer for them, we can help them figure this out. By working with each client individually, we can guide them on a plan to help them save for their golden years in life.
If you need a definite answer as to how much money you’ll need to retire, then follow this rule of thumb: you’ll want to have at least 70% of your pre-retirement yearly salary to live out your later years comfortably. Although that could be enough IF you’ve paid off your mortgage by then and are in great health, it might not be enough to really live our your retirement as you originally wanted.
To better figure out how much you’ll need to save for retirement, you’ll want to be completely honest with yourself. Write down what you want retirement to look like. Then set realistic estimates about the kind of expenses you’ll have in retirement. This will help you figure out a certain number when it comes to retirement funds.
Look at your current expenses and place them in various categories. From there, estimate how they will change later on. For instance, your mortgage might be paid off and you won’t have commuting costs. However, you might want to factor in your health care costs (which tend to rise as we all grow older).
Planning for retirement can be very overwhelming. But it doesn’t have to be. Stop worrying and asking yourself over and over again, “How much money will I need when I retire?” Instead, contact us and we’ll help you figure it all out. Our skilled agents will provide you with various retirement options. You’ll be able to sleep soundly at night knowing you’re retirement is looking good!