As society has evolved, retirement has become a more and more complicated idea. Many have chosen to retire at non-traditional different times, changing their career paths and lifestyles at a late age.
The meaning of retirement will likely continue to shift as the fabric of society itself redefines itself. But what does all of this mean for you?
What Does Retirement Mean?
The topic of retirement is a personal one for each individual and has now become more than just “not working anymore”. For some, it means taking a break from the workforce and traveling, volunteering, or spending more time with grandchildren. For others, it means simply continuing as they have been working without a break.
Overall, retirement typically refers to the time when people stop doing what they have to do and start focusing on what they want to do.
The one given is that retirement is a significant financial decision, no matter how you define or live it. It’s a crucial time to reflect on what you want to do with that next chapter of your life.
Whatever your definition of retirement is, you’ll want to ensure that you can pay for services and necessities, living primarily or entirely off the money you have saved.
How Much Do I Need to Retire?
Retirement is a milestone many people are trying to prepare for. Unfortunately, knowing how much retirement will cost can be difficult.
There is no single answer to the question, “How much do I need to retire?” The amount you need will vary greatly from someone else, depending on your ages, your marital status, your health, and more.
You’ll also want to look at the cost of living in retirement to ensure that your retirement lasts.
How much will you need to save for retirement? The amount you specifically will need to save for retirement is dependent on several factors, such as your current age, how many years you have till retirement, your current lifestyle, and the amount you are earning. If you’re unsure about how much to save, it’s suggested that you start with a goal of putting aside 10%-15% of your earnings every month into some sort of retirement plan, preferably one through your employer who can also provide matching funds into your account.
When Do You Want To Retire?
Age is a factor that heavily influences how much you need to save to retire. The earlier you start saving, the more you can save and still enjoy a comfortable lifestyle.
Retiring at any age is no easy task. It takes many factors into consideration, such as your health, finances, and standard of living.
The average retirement age for both men and women is 65. However, some people retire earlier than this while others wait until they are 70 or older. If you have plenty of time until retirement age, you will likely be able to put away a much more sizable nest egg than if you only have a short amount of years to go.
How Would You Like To Retire?
Another factor to consider is the type of lifestyle you’d like in retirement. Want to retire abroad? With children? Traveling cross-country? In the comfort of your own home? Getting an idea of your preferences now will ensure that you have the funds you need and more when you need them.
Make sure to include an emergency fund in case of an unexpected event, so you will have enough money to live on. The unexpected does come up, and it’s essential to have a plan in place to deal with it. Saving money is a great way to create an emergency fund. Once you’ve got these factors in place, you’re well on your way to a cozy retirement.
Develop Your Retirement Plan Early
By starting early with saving and investing in a retirement account, you’ll likely become self-sufficient and be able to save a lot more money. The more you invest and the earlier you start means your retirement savings will have that much more time and potential to grow.
The Financial Quarterback Is Here For You!
Here is the truth about how much you will need. Instead of becoming overwhelmed in trying to get answers that are difficult to see so far into the future, JUST START SAVING and work with a qualified Certified Financial Planner to review your progress and take course corrections along the way. As you get closer to that “magic” time, you can begin putting the “finishing touches” to reallocate and close the gap in order to meet your desired retirement standard of living.
Need a little help? We can help you nail down your retirement plan and how you can get there with our friendly expert staff! Contact us today to learn more!
