How much do you need to retire? How much will you spend during retirement? How long will you be retired? These are some of the most common retirement questions. Age-based retirement analysis can help you plan with so many uncertainties.
If a person saves 15% of his/her income starting at age 25, invests more than 50% of his/her savings in stock, retires at age 67, and maintains their pre-retirement lifestyle, than he/she needs to save 10x your pre-retirement income by the age of 67. Let’s get on track on how to accomplish this retirement savings:
Aim to SAVE at least...
1x your income by age 30,
3x by age 40,
6x by age 50,
8x by age 60
The longer you can delay retirement the less amount of savings you will need. Your savings will have more time to grow the longer you work and your Social Security benefits will be higher. Due to health and job status, you must choose when is best to retire. One thing is true, the longer you work the easier it is to reach your retirement goals. How do you want to live in retirement? Will you spend more or less in retirement? Besides your age of retirement, spending during retirement is an important factor to consider.
No matter what your age is, it is important to set and reach retirement goals. There are ways to catch up on these goals if you fall behind, but the sooner you start saving the better.
Want more information on planning and saving for retirement?
Contact Brien@TraditionsWealthAdvisors.com or 979-694-9100.