Saving for retirement, good! But it gets more complicated. You need to think of your spending, the guaranteed income you’ll need and where it will come from. You need to think beyond retirement savings and you may need to think about survivor income as well.
For many retirees Social Security will provide 30-to 40% of your current income … and with some COLA adjustments. Is that sufficient to live on, to deal with inflation for twenty-five years? Probably not.
Most people don’t have a pension so one challenge is providing a lifetime annuity for essential expenses, including all too often these days, a mortgage.
Another challenge is non-retirement savings. You can’t have a pool of retirement money and also expect to tap that fund for emergency spending without disrupting your retirement strategy.