How much do I need to retire
It can vary by individual, and it will get affected by factors like your income, your lifestyle and even your health. Here are a few general principles that can help you evaluate whether you are on track.
Follow the simple retirement saving formulas
15% of your gross salary every year
Fidelity Investment had another formula: save15% of your pre-tax salary each year. By the age of 50, a retired person should have 6 x the annual salary, age 60 is 8x and age 67 is about 10 x annual salary.
Retire with confidence: the 4% rule
According to Investopedia, one easy-to-use formula is to divide your desired annual retirement income by 4%. Assuming you have 30 years after being retired and the annual income is $40,000, the comfortable retirement savings should be about $1 million (40,000/0.04).
Estimate by a retirement calculator
Fill in your age, pre-tax income, monthly savings and other variables , Nerdwallet can roughly show you whether you are on track for your retirement plan.
All goals are achieved by small steps, Vanguard breaks down your retirement goal by month. You can directly see how much money you’ll need to have saved in order to retire comfortably.
Consult a certified financial planner
Anxious that you may be unable to answer “when can I retire comfortably”? You are not alone. Mintel showed that only 1 in 10 baby boomers have a written financial plan. This can be a complex and daunting task, but remember everything is in control. If you’re ready to start planning for retirement, we are excited to announce that we have partnered with certified financial planners who are experienced in working with seniors and retired individuals. Let’s develop a retirement plan that tailors to your unique needs and financial goals. Navigate life with a purpose!
Call (855) 440-7015 to schedule a consultation with one of our financial advisers. We look forward to helping you create a retirement plan that’s right for you.
