12/16/2021
HOW MUCH DO YOU NEED TO RETIRE? ๐ค
Most experts say your retirement income should be about 80% of your final pre-retirement annual income. That means if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce.
This amount can be adjusted up or down depending on other sources of income, such as Social Security, pensions, and part-time employment, as well as factors like your health and desired lifestyle. For example, you might need more than that if you plan to travel extensively during retirement.
One rule of thumb is to save 15% of your annual earnings. In a perfect world, savings would begin in your 20s and last throughout your working years. Chances are your actual ability to save will be affected by life events such as the job loss many experienced during the COVID-19 pandemic.
Sometimes you'll be able to save more for retirementโand sometimes less. Whatโs important is to get as close to your savings goal as possible and check your progress at each benchmark to make sure you're staying on track.
For many people, retirement funding does not rely on a single source of income. Instead, their cash flow comes from a combination of sources, which may include a pension, Social Security benefits, an inheritance, real estate, or other income-generating investments or opportunities, such as working online.
