Is there an excuse for a 50-60 year old to not know how much income he or she needs in retirement? Excusable or not, it seems to be the reality.
Don’t fall into the trap, it’s quite simple; just assume you will need the same income you are living on in the several years before you plan to retire. While a few expenses may decline in retirement, they will be offset (at least) by others.
Calculate your projected Social Security benefit and the balance is what you need to generate. If you have no pension, that means income comes from investments.
So, if you need to generate $30,000 per year in addition to expected Social Security, as a general rule you need $750,000 accumulated strictly for retirement income.
So how much do you need to save to reasonably reach that goal? Well, assuming 6% avg annual return you would need to save $375 a month for forty years. There are calculators readily available to help you with your own calculations.
The key is save as much as possible as soon as possible and if you need to cut back in later years you will have a pool of money working for you over a longer period of time.
Half of mature workers delaying or giving up on retirement
🤑 30 percent of U.S. workers aged 60 or older don’t plan to retire until at least age 70—and possibly not then, either.
It’s a grim picture for older workers: half either plan to postpone retirement till at least age 70, or else to forego retirement altogether.
That’s the depressing conclusion of a recent CareerBuilder survey, which finds that 30 percent of U.S. workers aged 60 or older don’t plan to retire until at least age 70—and possibly not then, either.
Another 20 percent don’t believe they will ever be able to retire.
Why? Well, money—or, rather, the lack of it—is the main reason for all these delays and postponements.
But that doesn’t mean that workers actually have a set financial goal in mind; they just have this sinking feeling that there’s not enough set aside to support them.
Thirty-four percent of survey respondents aged 60 and older say they aren’t sure how much they’ll need to save in order to retire.
And a stunning 24 percent think they’ll be able to get through retirement (and the potential for high medical expenses) on less than $500,000.
And then we have this. Even With Medicare, Seniors May Need up to $350,000 to Pay Medical Bills