It’s the ultimate question Americans have about retirement: How much will it cost? Knowing exactly how much retirement will cost seems to require a crystal ball—but there’s an easy way to do some forecasting.
You work hard for your money, so when you choose to put funds into a retirement plan, you expect that money to work hard for you. You scrimp and you save, hoping that one day, you’ll have enough to retire comfortably. If you’re smart about how you plan, you can do just that—but, like most things in life, it’s not as simple as just saving. You need to save strategically and grow your funds—otherwise, you might find yourself falling short when you finally decide to retire. Watch out for these 3 silent assassins; they could kill your retirement before you even get started.
The hardest part of retirement planning is projecting how much money you’re going to need to save. There are so many variables and even if you think you have a handle on what you’ll be doing when you finally retire, life loves to throw curve balls. So how can you go about calculating exactly how much you need to save when retirement is not yet a reality?
Everyone knows the importance of retirement planning these days, but fewer people remember that, like all good plans, a successful retirement strategy has multiple stages and tangible goals. Use this guide to the 3 key phases of successful retirement planning to determine where you are in your plan—and how you can get to the next stage.
Planning for retirement isn’t easy—especially when it comes to ensuring you’ve saved enough money to live comfortably after your last day on the job. Even if you save from an early age, it likely won’t be enough, considering the increasing life expectancy and cost of living in America. You need to invest your savings to make them grow. But we know that the market can be intimidating, time consuming, and a bit scary to enter due to investment risks, especially when you don’t have any prior knowledge or experience.
Retirement planning has become more stressful in recent years. With the cost of living constantly increasing, life expectancy higher than ever, and company-sponsored retirement pensions facing extinction, you might be worried about how much money you’re going to need to save in order to retire comfortably. In fact, this is the biggest question for most Americans who are planning for retirement. But, unfortunately, there is no easy answer. The true cost of a comfortable retirement is almost entirely based on your unique circumstances.
Under-saving for retirement is a big concern for most Americans. With the average cost of living going up as well as the average life expectancy increasing, many Americans fear the worst: that they’ll outlive their savings. It’s a real concern that you should take seriously. After all, you probably do not want to depend on your children to take care of you financially in old age. However, it doesn’t have to be a constant worry. If you take charge of your retirement planning early, you can create sound strategies to ensure that doesn’t happen. And one of the best back-up plans you can have is to work part time in retirement.
The first thing you’re going to have to figure out once you start retirement income planning is how much money you actually need to retire. You don’t want to save for years and then retire only to realize that you planned incorrectly and don’t have enough saved to retire comfortably. You don’t want to realize that you’ll run out of money in 10 or 20 years. Knowing how much money you’ll need is a critical question that you’ll need to answer. But there is no one-size-fits-all approach or easy answer.