How Much Retirement Income Is Enough
So, how much money should you set aside when planning for retirement? How do you know that you’re on track? Many factors affect your target savings rate, including your retirement age and retirement lifestyle, how long you’ve been saving and how much you’ve already saved. Retirement income largely depends on your current income as well as the way you plan to spend your retirement. Other factors to consider include the rising cost of healthcare, the cost of living, and medical advances that have led to longer life expectancy. For these reasons, people have needed to plan for a longer retirement than they would’ve in the past. It’s worth asking how much retirement income is enough. There are many variables to consider when it comes to planning for retirement. For this reason, you need to select a strategy that’s most suited to you.
Budgeting For Retirement
One of the most important things to do when planning for retirement is making a budget. A realistic retirement budget takes into account all the sources of income you receive each month. Having to plan for an income in retirement, along with an investment strategy to grow your nest egg, is the foundation of a smart retirement.
When planning for retirement, inflation is a key factor to consider when thinking about how much is enough to retire. The rising cost of living causes each dollar you save to depreciate over time. The basic inflation rate can be calculated. Inflation is typically around 2% annually. You should take your usual yearly expenses, and compound them by 2% each year. An effective retirement strategy requires figuring out how much income you’ll need now, and in the future. You deserve a financial strategy that will provide you with the income you need, for the rest of your life. Here at Slate River Financial, we can walk you through this process, keeping in mind your specific circumstances.
Red Line Vs Green Line (Stock Market Vs Safe Money)
Some people don’t mind the ups and downs of the stock market (that’s the red line) because they can ride the emotional waves of seeing their retirement account sink.
Most retirees, however, prefer a reasonable rate of return**, while keeping their nest egg secure (that’s the green line.) They want to know they aren’t in danger of running out of money, no matter what happens with the stock market.
Our team can provide you with “safe money” options. we help retirees to feel secure about their future, by using certain types of annuities and indexed life insurance products. Contact us today to learn more!
We Can Help You Feel Confident When Planning For Retirement
Get in touch with us for a no-cost, no-obligation meeting. Or, you could join us at a no-cost, no-obligation educational dinner.