Retirement is a time in our lives that most of us look forward to. Who does not like the prospect of being able to stop working for a living one day; to have the hard work you have put in over the years now, work for you and sustain you in your latter years – comfortably. Still, it is important to remember that is will take careful planning and a fair amount of fiscal discipline to finance the retirement of your dreams.
How Much Do You Need To Retire?
Figuring out just how much money you will need to retire is important to being able to retire successfully, and fund the retirement of your dreams. A myriad of factors will affect this reality, and so you should aim to realistically assess your current and future (where possible) financial situation – weighing future projections, and measuring them against your goals. Considering the following factors (among others) will help you to make the necessary assessment and requisite adjustments.
- How much you are earning now
- What your projected income will be throughout the rest of your working years
- Current investments – short, medium, and long term
- Future investments
- Current expenditure — how much you are spending (average) on a daily, weekly, monthly, and yearly basis
- Prospective expenditure — Do you have children who will be going to College in a few short years or do you have ailing parents to take care of
Calculating Retirement Funding
Thanks to the Internet and other available technologies, calculating your projected needs regarding retirement and building a plan to get there, no longer requires a tedious process. In fact, there are many credible financial websites that offer retirement calculators and planners that can help you on your way. These calculators use information pertaining to certain factors (like the ones listed above) to help you decide on dollar amounts that you can save, invest and otherwise earn towards your retirement.