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How Much Will You Need to Retire?
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.
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| Will I still have a mortgage when I retire? Some
people would never dream of retiring with a mortgage, whereas others
still see theirs as a valuable tool. With today's higher real estate
values and modern financing programs, carrying a mortgage into
retirement may come down to your personal comfort level. Regardless,
it's a good idea to consider the role a mortgage will play in your
retirement.
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| 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
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