If you have already saved enough for your retirement or at least have a retirement plan, that’s great! However, statistics show that most Americans have no idea how much they would need and how to save for their retirement.
Understandably, calculations may seem scary but don’t let them stop you. There are several tips to help you stop procrastinating and start working towards your retirement goals (or set them in the first place).
How much money do you need to save?
It’s quite common to think that you need to save so much money that it’s useless to even start saving. However, you probably don’t need to save so much money!
You only need to invest a sum that will grow over time and become the sum you need for a comfortable retirement. If you still have working years left, you are likely to be able to save for retirement without sacrificing your current financial goals.
Get an estimate of how much you need
Your financial situation can change so trying to estimate the amount of money you need is often a complicated task. While it’s easier to choose a certain amount and pretend it’s enough, you have to take this seriously.
To get the idea of how much you need to retire comfortably, contact Calvert Investment Counsel.
Speaking of estimates, experts say you will need around 70% to 80% of your current income after your retirement. Understandably, people want to maintain a good quality of life after the retirement and also be able to pay for medical bills.
However, this is a huge generalization that isn’t true for everyone.
For example, many people save for their child’s college education, fund care for older parents, pay rent and so on. When planning for retirement, you should consider all payments that you are going to make.
Quite often, expenses decline after your retirement because many bills are paid off.
Some Americans start working part-time after the retirement. However, not everyone wants to keep working in their 70s.
Health problems can also stand in the way of working. And many employers refuse to hire elderly as well. This can be one of the options to consider, but don’t rely on part-time jobs in your retirement.
Here’s Your Next Step…
Want to make sure you have enough money when you retire? Do you want to remove the worry and fear of possibly running out of money? How about having enough money to comfortably enjoy your life and do all of the things you want?
If so, contact Calvert Investment Counsel today at 410-435-3270. One of our retirement planning specialists will walk you through our multi-step process so that you can figure out how much money you will need to retire comfortably, and enjoy a worry and stress free retirement.