Many financial experts estimate the amount someone will need to retire comfortably is between 55% and 80% of their current annual income for each year they’re retired. How much you’ll need will depend on expenses and lifestyle goals.
1. Expenses, Now and Later
Consider the expenses you have now and how they may go up or down over time:
2. Retirement Lifestyle Goals
Picture yourself happily retired. What does that look like? Are you puttering in your garden or cruising the world? Eating in or dining out? Downsizing or upsizing? Working part-time or taking off for good? Set some goals and commit to working toward them.
3. Retirement Income Streams
Think of the income streams you already have going and consider new sources to add:
- Social security
- Traditional IRA
- Roth IRA
- Rental income
4. Make Adjustments
Not saving enough yet? It’s never too late to make changes. You can reduce your spending, save more, generate supplemental income streams, or wait a little longer to retire. If you have a spouse or partner, work together on a plan both of you can get behind.