Many factors determine the amount of money you need to save to enjoy retirement. As many retirement planning services will confirm, you need to consider your current age, age at retirement, health, sources of retirement income, and how much you plan to spend. Everyone’s lifestyle is different, which will translate to the activities you will take up after retirement.
Create an annual estimate based on what your expenses are today and how that might change when you retire. If you plan to travel more or pursue an expensive hobby, invest more to meet these discrete expenses. As you figure out your retirement plan investment, consider another source of retirement income such as your social security fund, pensions, annuities, rental income, inheritance, or proceeds from selling your home.
These added income avenues will help cushion you and help in settling immediate bills and expenses. Lastly, if you have plans to work in retirement, be realistic because many people imagine they will do it but do not. To understand where you are in your retirement plan and what you can do to stay on track for the future, use a personal retirement calculator available online or from a reputable retirement planning firm.