How Much Do I Really Need for Retirement

One of the most common questions individuals ask as they are preparing for retirement is “How much money do I REALLY need?”  They want to know they will be safe and secure, but also want to retire where they are in the moment.  If you are nearing retirement, chances are you are asking that question too.  The answer depends on how you want to live your retirement. If you aren’t sure, here are a few points for you to think about:

How much money do you make?

If you are making a certain amount of money now, you shouldn’t expect to live a life that requires 10x that amount each year during retirement.  Generally speaking, your retirement savings should total at least 10x your current income.  By the time you retire (depending on your age) many of the larger bills or debts you have now will be paid off, and you will be able to use the supplemental income you have saved for activities and other lifestyle choices.

What age do you want to retire?

How much money you need in retirement is very dependent upon the age at which you retire.  If you plan to retire at a young age (before 65), you will need to prepare for expenses such as private health insurance instead of Medicare.  Furthermore, if you retire at a younger age, you will have more years of expenses you need to account for, including the years that you will not collect social security.

What lifestyle do you want to live?

To be able to take annual trips or cross off items on your bucket list, you will need to have the savings to do so.  It takes many funds to fly across the world or go on a summer vacation through Europe.  Many experts recommend starting with an ideal nest egg of $1 million and then building from there based on the lifestyle you want to live. Unfortunately, for today’s baby boomers it is not always easy to create this ideal nest egg savings due to increased costs of living expenses, unforeseen situations, i.e., losing a job or having to assist loved ones financially.

If you are uncertain of how you will pay for your living expenses during retirement and don’t think you have enough saved, a Reverse Mortgage can be an ideal solution to tap into the extra funds you need. Many financial experts can help you understand reverse mortgages and decide whether or not it is the right choice for you. Our Reverse Mortgage Team can help guide you into a more enjoyable and financially secure retirement. Give us a call at 1-800-420-5515 to learn more!

Leave a Reply