Retirement isn’t what it used to be. If you’ll be retiring soon, your life may not look much like your parents’ retired life. Not only are today’s retirees living longer, they’re often leading more active lives. That means that it’s in your best interest to have a retirement plan that will provide the right support you need, however you choose to spend your retirement.
You may have spent your working life building up retirement savings to ensure that you can spend your time the way you’d like to after you leave the workforce. If you’ve taken advantage of having a 401k retirement plan, you have a solid foundation to start from, but it can be necessary to have other savings.
Whether retirement is just around the corner for you or still a number of years away, it’s important to have a clear idea of what you’ll need for the lifestyle you want. You can find tools like a retirement savings calculator on the Web to make it easier to see exactly how much money you’ll need – and how much ground you need to make up to meet your goal.
Many factors will affect how much you’ll need to save. Take these things into consideration when you ask yourself, “How much do I need to save for retirement?”
* What you love to do. Are you an avid golfer who wants to hit the links in different locations across the country and the world? Or do you want to devote yourself to your passion for writing? You’ll have time in your retirement to do what you really want to do, but different hobbies have different price tags. Know your priorities and make a realistic assessment of how much you’ll need.
* Your family. Families have changed right along with retirement trends, with many people choosing to have children later in life than previous generations of parents. If your children will still be in high school or college when you retire, you should consider whether you’ll be helping to support their education. And if you’re welcoming grandchildren, you might also want to set something aside for them and their future.
* Your home. Naturally, making mortgage payments every month is a big part of your budget. Having your home paid off by the time you retire can be a major benefit. Not only can it provide you with a comfortable place to spend your retirement, but it could also be a source of income, if you sell it. If you don’t need a big home any longer, you might want to downsize to a smaller, less expensive residence.
* Social Security. You’ve been paying into Social Security throughout your working life, with every paycheck. The Social Security website, ssa.gov has a retirement planner that can help you find out more about the program will benefit you.
Retirement, when planned right, can be one of the most exciting times in your life. You’re free to do just about anything you can imagine, as long as it is within your pre-planned retirement budget.