Calculating How Much You Need for Retirement
February 5th, 2010 at 23:25
This video discusses how much of your pre-retirement income you will need post-retirement. It is from the PBS series “Getting Your Finances Ready for Retirement”.
Calculating how much income you will need for retirement is a tricky business. It starts with the type of lifestyle you want in retirement. The number the experts usually use is a percentage of your pre-investment income.
Arriving at this percentage is important because it will predetermine how much you think you will need for retirement. Not all experts agree on how to calculate this number. Some say you should count on as much as 110% of your pre-retirement income. Others say 70% or even 65% (two-thirds) is much more realistic.
Obviously the ratio depends on what type of retirement lifestyle you want. If you want to do a lot of expensive traveling or buy a pricey boat, then obviously you will need more.
While financial advisors may disagree on the amount you should shoot for, they don’t disagree on the necessity to plan ahead and start early. Everybody agrees on that.
Tags: retirement income, retirement planning, retirement saving
May 25th, 2010 at 8:40 pm
i am saving money for my retirement because i want to enjoy most of my time as an old man.’;’
July 28th, 2010 at 3:50 am
as for my retirement, i plan to retire on an asian country and live a quiet and simple life.”`