In the last few year surveys have given shocking results when it comes to retirement money issues. The question of how much do I need in retirement, is most of the time asked way to late in life. Millions of individuals have little to no money tucked away for their retirement years. In a 2014 retirement survey, the facts revealed that approximately 70% of people with no retirement plan such as an Ira or pension had less than $1,000.00 saved for retirement years.
Could having little or no retirement funds put our society into a upcoming retirement crisis? It possibly could happen, just don’t allow it to happen to you.
Everyone’s situation is different, you most certainly do not want the same plan as your neighbor that has $50,000 in credit card debt and struggling with a small monthly benefit. I know you want a decent place to live, to have the money to do whatever you want, to enjoy your later years.
The only way to figure it out is to sit down and do some serious calculations on going into retirement, what you have or don’t have, including such things as:
- Income available
- Income that will stop
- How long you will have to continue working
- Rising healthy cost
- Replacement cost (such as vehicles, home appliances)
- Inflation, taxes,
Of course if you presently have little or nothing saved, how about if you design your plan for working longer, supplementing your income, or working smarter. Depending on your age right now, if you do not presently have a decent retirement plan already in place, you will have to continue working into your 70‘s. (it is sad to say that millions of older individuals are working at minimun wage positions, because they have to).
Unless of course you have a rich relative you plan on living off of, or you could get in line and continue to buy those lottery tickets!
Do you plan on just relying on social security? WHY?
Most people, since they were not able to save any money for the golden years, plan to have social security as their main source of income once they retire. If you fall into this category what you need to remember is to maximize your benefits. This can be accomplished before you retire by getting raises, working a second part-time job, and even delaying retirement, because high earning years later in your working life will cancel out years in your twenties when your income was lower. The date you sign up for social security will affect the amount of your monthly income benefit as well.
. Of course it is a matter of trying to figure it all out.
So you see when you ask the big question of how much do I need in retirement, the answer is not a simple one. Face it, growing old and looking at all aspects of how, when, where to retire is not going to be easy, those willing to get help, learn new things, to plan and achieve their goals will definitely figure out the mass of retirement issues and will have a more smooth road to travel. A few good places to start is maximize your social security, using a retirement calculator and getting the right advise for your situation.