Planning a comfortable retirement requires serious thought, it also requires math. There is no simple answer to the question, “How much do I need to save for retirement?” However, there are numerous factors to consider when calculating that “magic” number. Working through the calculations of various retirement-related expenses and lifestyle options is a much better approach than guessing how much you’ll need, whether it’s $ 500,000, $ 1 million, or even more.
There is also a more basic calculator available, which takes into account marital status, expected retirement age, and anticipated monthly expenses and considers alternatives, such as waiting to claim Social Security until age 70 or downsizing to a less expensive home. during retirement. NewRetirement and MarketWatch also have other calculators on the site, including ones that break down retirement income, net worth, or when to retire. Naturally, not everyone knows how much they will spend in retirement, if they will have excessive health bills and what their housing situation will be like (or even where it will be), especially when retirement is not for a few more. decades. The numbers don’t have the same meaning without some of these unknowns. For those who don’t know all of these numbers yet, one strategy is to start from where you can, Blackwell said. A solid figure right now is not nearly as beneficial as seeing what you can save and where it can make a difference in your personal finances. People just starting out in their careers may be limited by their cash flow, so they should try to make small but significant achievements, such as meeting an employer’s 401 (k) equivalent, increasing the amount they save by 401 (k) even. lightly, adding a couple of dollars to your individual retirement account or avoiding unnecessary purchases. (Don’t cut out all the luxuries or nonessential expenses – depriving yourself of the little joys isn’t helpful, either.) Online calculators like NewRetirement’s, as well as those offered by other financial firms (such as Betterment, Fidelity, and Vanguard), can help provide a general idea of how to plan, but remember, there will be a lot of twists and turns toward retirement along the way. along the way. . Want more tips for your retirement savings journey? Read the “Tips for Retirement” column on MarketWatch