|
 Uncertainty over the future of Social Security, longer life expectancy, and inflation all factor into how much you'll need to save for a comfortable retirement.
Remember:
• Size up your most recent retirement savings calculations
• Talk to your spouse or partner about the financial implications of your retirement plans.
• Create a list of your likely sources of retirement income.
• Take a look at your retirement account statements.
• you need to plan on an annual retirement income
• You may have higher expenses in some areas
• You may need between 60% and 80% of your final working years' salary.
• Retirement income may be made up of pension benefits
• Your financial advisor can help you develop an estimate of your needs and a plan to help you accumulate a retirement fund to provide income you'll need.
As you begin to think about how much you'll need for a comfortable retirement, you may be startled to learn the impact of inflation. At an average inflation rate of 3%, your cost of living would double every 24 years. Your annual income will need to increase each year even during retirement in order to keep up with the gradual rise in prices of everyday goods. Another thing to consider is likelihood of increased medical costs and health insurance as you grow older.
|