HOW MUCH MONEY DO YOU NEED TO RETIRE?
It can be difficult to figure out how much money you need to be able to enjoy a comfortable retirement because 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 buy a beach house. 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 calculate 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. You can use our AxiomGO built-in budgeting tool, My $ Manager.
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 figuring out estimates in your head, try an online calculator that can provide estimates for how much you need in retirement.
Have retirement checkpoints.
Make sure you’re on the right track with your savings as it’s important to know where you stand, and what could be done to further your success. Checkpoints allow you to measure your progress.
Save. Save. Save.
The best thing you can do is save — start early and be consistent. Amounts will differ based on income, but if you have extra income coming in, be sure to deposit it directly into your retirement savings account. By saving at a reasonable and consistent rate, you’ll have greater chances to avoid the situations where you fall short in your retirement goal.
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. Decide what you want for your retirement lifestyle and save accordingly. We’re happy to help with any financial questions you may have. Contact us today!