It is very amazing for me that many of us have worked over the years without thinking too much about how we will live when we retire. What is – we want to be able to Will stop working at some point and enjoy our retirement years. But the only way to do it is to be prepared financially.
How do you know how much you need to retire? Try the following steps:
1. Calculate your current cost of living. Statistics say that when we retire, we must earn about 70% while we work. This may not be the right size for most of us, because we are likely to stay longer than we ever had before we get older, which means we often travel and have entertainment costs. More on retirement do not forget that. According to older people, medication and visits, physicians often need to
not wise to rely on social security for us now for 20 years, because there is no real guarantee the money will be there when. We are ready to retire but now retirees can expect social security to replace 45% of income for middle-income Americans. If your home is paid before you retire, you will not have to worry about paying the mortgage. But older homes often need more. Maintenance Fee
If you can repay your debt before retirement, you will not need to make monthly payments on your credit or loan, which can reduce your living expenses by considering what they are. He may be
2. Specify the retirement income you want. Some people can significantly reduce their expenses when they retire. (As mentioned above, loan repayments and becoming debt free can make a big difference to the amount of income you want.) While others plan additional expenses for their retirement years, that’s a fact. Must have Money during retirement rather than when working
If you are planning a family trip or a vacation, your income must be able to support the journey. Many retirees hope to travel and if you are willing, you will want to make sure that your income is enough to make it happen.
Will you move? Some retirees or families move to another place or place where the cost of living is low and this can help reduce the necessary expenses. In addition, if you sell a home, you may have more profit in your retirement fund or to buy or rent an affordable home.
When you retire, will you have a source of income? Some people work part-time because they want to do something else. People have a source of income that they pass through their own business or investment. This will reduce the amount you pay for retirement.
3. Please take into account inflation. Life is more expensive than every other year, so you need to consider that when looking for the required amount for your retirement years. For example, the amount of money you can spend comfortably in the first year of retirement may be crippling during the fifth year and not enough during your tenth year! Experts say it will absorb 3% inflation
4. Try to predict how many years you will retire. How old are you when you retire? Okay, how old are you when you retire? (These two figures are often very different.) Then think about how many years you will live beyond your retirement. You can use a life expectancy or predictive calculator. But you have to estimate the year to estimate the amount you need for retirement.
5. Plan your budget clearly. What you can do is increase the money you spend each year on retirement, taking into account your inflation and lifestyle and raise the money each year you retire. Then save Most people find that their retirement numbers are away from regular savings, so you may want to use an investment strategy to help you access the number. Financial advisors can be very helpful with this. It is recommended that you allocate 15% of your annual income for retirement.
CNN Money has an interactive retirement calculator that you can use to help with your expenses.