Are you ready for retirement? Do you know when you will be ready? Do you know how much you need? If you don't, you aren't alone. In spite of today's financial woes, people are not looking ahead and figuring out how much money they will need to retire comfortably.
Just like researching credit cards at moneysupermarket.com it is important to research how much you are going to need to retire and come up with a plan to make it a real possibility.
Start Calculating
It does not matter whether you are in your 20s or your 70s, you need to know how much money you require to retire. The sooner these calculations take place, the more time you have to prepare. At first, many people find these numbers chilling. They look at what they already have saved and realize that they are behind. Don't just put off the calculations for fear of what they may reveal.
Find a retirement calculator online. Look into what you are making now and how much you will need annually to retire. The calculator should give you a better idea of not only how much money you will need overall but also how much you will need to save to make that amount a real possibility.
Take Often Overlooked Items Into Consideration
Don't make the mistake of not taking everything into consideration. For example, when you retire, you do not automatically get excused from paying taxes. You will be paying on those retirement benefits as well. This means that when you calculate the amount that you will need each year, don't forget to factor taxes in to the calculation.
Most people do not see their retirement as a time to sit back and relax. Many want to use this time to pursue their interests. They want to travel, volunteer, or try out new things. This is going to take money and no retirement calculator will be able to take this into consideration unless you add it into the amount of money you'll need. You can always overestimate to ensure that you have too much in the bank for retirement rather than not enough.
Healthcare costs aren't decreasing anytime soon. In fact, the cost for insurance, doctor appointments and medications will continue to rise. Think about this when coming up with an amount that you need to retire. You do not want to overlook these costs and find yourself unable to do the things you had planned because you did not think about how much it would cost to protect and take care of your health.
Aim Higher
While these calculations will help you come up with a goal to save, be sure that you don't underestimate your needs. While many professionals suggest that you need around 80% of your current salary to retire, consider shooting for 100%. This gives you more freedom when the time comes to retire. With increased healthcare costs and the opportunities for an active lifestyle, you always want to make sure that you have more than you need, not less.
