Retirement Planning

Retirement Planning

© David Hartley | Evemaranth

If you are one of the current “Baby Boomers” living in the USA (79.6M according to the 2000 census) you are at some stage of your retirement years.  If you are like most people (75% of Americans) you have saved $30K or less for your retirement. This gives $1,200 a year in income at 4% return ($100/mo.). Not enough to pay for your food each month. Saving enough to live on after retirement requires hard savings while you are working during your adult years. 

Most people do not think they will become older and will need income to boost their social security and pension income. The reality is that without a clear plan, you might end up having to scrape by on very little, having to choose between food or medicine. Or worst, having to depend on government assistance.

To start planning you can use one of the calculators available online that allow you to plug in several parameters such as age, date of retirement, income, inflation rate, savings rate, # of years, return rate, etc. It calculates how much you will have as income based on what you save and whether that will be enough.  To save enough, you need to look at expenses right now, factor a 3% yearly inflation rate and project what that $$ level is when you retire. Plan on living 20-30 years beyond your retirement and see if your savings at retirement can last 20-30 years without running out.

To plan and find additional information look at calculators online at:

–> Fidelity Retirement Calculators & Planning Tools

–> CNN Money Retirement Calculators – CNNMoney

–> US News & World Report Retire Calculator

–> FINRA Retirement Calculator

–> AARP Retirement Calculator

–> Military retirement calculators

There are other calculators that allow you to plan for retirement or you can engage a financial advisor to help you plan for your retirement.

The most important part is knowing how much you will have and how much you will need each year. Planning for it makes the process easier and allows no ugly surprises when the time comes. Happy third stage – Retirement!!!