Asking yourself how much money you need in order to enjoy a comfortable retirement is difficult. Although it may be a challenge to figure out how much money you’ll need, a true monetary amount is different for everyone. It depends on factors such as where you’ll live, how healthy you are, and what you want to achieve in retirement. For example: travel or try exciting, new adventures. Ultimately, it depends on your lifestyle. But, here are some general guidelines to help you refine your answer.
Figure out your living expenses.
It is best advised to figure out how much you’re actually spending now. Create a budget, (if you haven’t already) to keep track of all your expenses. Doing this gives you the opportunity to see how much you’ll potentially need for your future.
Aim for 80 percent.
Financial experts suggest that you will need at least 80 percent of your income during retirement. For instance, if your salary was $75,000 per year, you may need $60,000 per year when you retire. That amount will vary depending on what you plan to do for retirement — whether you plan to take vacations or retire elsewhere, but 80 percent is a good start.
Use an online calculator.
If you’re having trouble trying to figure out estimates in your head, try an online calculator. Often times they will be able to offer estimates for how much you need to retire. It will also be in your best interest to try a few different calculators because each of them vary on the information it collects — see which one works best for you!
Have retirement checkpoints.
You will always want to make sure you’re on the right track with how much you’re saving. It’s important to know where you stand, and what could be done to further your success. Checkpoints allow you to see how you’re doing based on the progress you’ve been wanting to make.
Save Save Save.
The best thing you can do is save — start early and stay consistent. Amounts will differ based on income, but if you have extra income coming in be sure to deposit it right into your retirement savings account. By saving at a reasonable or consistent rate, you’ll be able to keep an open mind about your retirement and hopefully avoid any situations where you fall short of money.
Saving for retirement may come as a challenge, but with these general guidelines, we hope to help you figure out how much you need to save for a comfortable retirement. Save what you can and decide what you want for your retirement lifestyle. We’re happy to help with any financial questions you may have, so contact us today!