It takes money to retire. Most of the time , you hear people talking about retirement “age”. Age really has little to do with it. Money is what you need to retire. You may retire right now if you can afford it. But before you think about how much money you will need, there are other things to consider.
If you retire, what are you going to do? Why retire if you don’t have anything to do? It might be that in preparing for your later years, you need to develop a passion for some other things. Some people already know what they will do. Say you have always wanted to donate your time at your church or maybe you already have a hobby that you want to put a lot of time into. That’s great. You’re ready from that aspect. If you don’t know, start discovering it now. I just started to learn how to play golf. At 49, I decided I really wanted to learn, and I am learning. ( Wow, it is so much harder than I thought it would be).
Okay, how much money do you need to retire? I found this quote from over at Thirdage.com, from an article.
“Drew Denning, vice president for the retiree services division at the Principal Financial Group in Des Moines, Iowa, said boomers also need to “make sure your nest egg is at critical mass.”
He noted that studies by the nonprofit Employee Benefit Research Institute in Washington, D.C., and other groups have found that a majority of Americans haven’t saved enough and haven’t tried to estimate retirement expenses.
Denning’s quick formula: Figure that you’ll spend in retirement between 70 percent and 100 percent of what you do before retirement. Subtract your Social Security benefit. Subtract your pension, if you’ve got one. Say the result is that you need an additional $50,000 a year. Multiply that number by 20 to 25, which begins to approximate the number of years you’ll likely live in retirement. In this case, your nest egg needs to be at least $1 million to maintain your lifestyle. “
Tags: retirement by Mack
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