 An alarming 43% of baby boomers are at risk of retiring with an income that falls short by 10% or more of what they will need to maintain their current lifestyles. (1)
If your retirement lifestyle was going to be reduced by 10% or more, when would you want to know about it? One way to help reduce potential surprises is to perform a retirement needs calculation. You can get started by asking yourself these questions. At what age will I retire, and how long do I expect to be retired? You might have a pretty good idea of when you would like to retire, but obviously you can't predict exactly how long you will live. However, it's still a good idea to try to estimate this – and ideally you should over-estimate by about five years. Factors to consider should include the health and longevity of people in your family, your current health and lifestyle, and how long people in your age group are expected to live.
How much income will my preferred lifestyle require? Everyone has different ideas about the perfect retirement, but walking away from a regular paycheck can be a scary proposition. Be realistic not only about estimating your living expenses but also about what it will cost to achieve your hopes and dreams. Whether you intend to travel, play golf, volunteer, or sail around the world, you will have more choices the sooner you get serious about meeting your goals. If you haven't yet performed a retirement needs calculation, call us today. We can help you learn how much of your current income you need to set aside now to help pay for the retirement of your dreams. 1) Financial Planning, August 2006
How Much Will You Need to Retire?
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