Income at Retirement x .80 = Retirement income need
The rule of thumb on how much you will need to retire on is 80% of what you are making at the time of retirement. For instance...if you were to retire today, and your current income is $20,000, you would need $16,000.
$20,000 X 80% (.80) = $16,000
The rule of thumb on how much you will need to retire on is 80% of what you are making at the time of retirement. For instance...if you were to retire today, and your current income is $20,000, you would need $16,000.
$20,000 X 80% (.80) = $16,000
Myths
There are many myths about retirement that must be dispelled for an accurate retirement plan
There are many myths about retirement that must be dispelled for an accurate retirement plan
Social Security will take care of me
According to research provided by the National "Save for your Future" organization, you will need 70-80% of your pre-retirement income for a comfortable retirement. Social Security only makes up about 40% of your pre-retirement income. You'll have to rely on your own savings to make up the difference.
The rule of thumb on how much you will need to retire on is 80% of what you are making at the time of retirement. For instance...if you were to retire today, and your current income is $20,000, you would need $16,000.
$20,000 X 80% (.80) = $16,000
According to research provided by the National "Save for your Future" organization, you will need 70-80% of your pre-retirement income for a comfortable retirement. Social Security only makes up about 40% of your pre-retirement income. You'll have to rely on your own savings to make up the difference.
The rule of thumb on how much you will need to retire on is 80% of what you are making at the time of retirement. For instance...if you were to retire today, and your current income is $20,000, you would need $16,000.
$20,000 X 80% (.80) = $16,000
I only have a few retirement years to fund
According to the Social Security Administration, the average male currently aged 65 can expect to live to age 78, while women can expect to live to age 82. Therefore, the average number of years an average male can expect to receive retirement benefits after age 65 is 13 years and 17 years for the average woman.
According to the Social Security Administration, the average male currently aged 65 can expect to live to age 78, while women can expect to live to age 82. Therefore, the average number of years an average male can expect to receive retirement benefits after age 65 is 13 years and 17 years for the average woman.
I won't need a lot of money during retirement
Don't bet on it. In addition to the probability of funding a longer retirement, you will also have to consider the cost of inflation as well as the astronomical increase in medical cost.
For example, a ½ gallon of milk today would cost $1.50 but in 20 years, calculating inflation at the rate of 3% a year, the same ½ gallon will cost you $2.71.
In addition, research reported in the Nov. 20, 2000 edition of Business Week indicates that by 2030, an average nursing home stay could cost as much as $125,000 per year. Currently the average stay cost about $55,000 a year.
Don't bet on it. In addition to the probability of funding a longer retirement, you will also have to consider the cost of inflation as well as the astronomical increase in medical cost.
For example, a ½ gallon of milk today would cost $1.50 but in 20 years, calculating inflation at the rate of 3% a year, the same ½ gallon will cost you $2.71.
In addition, research reported in the Nov. 20, 2000 edition of Business Week indicates that by 2030, an average nursing home stay could cost as much as $125,000 per year. Currently the average stay cost about $55,000 a year.