How much do you need to save to retire comfortably? The best answer is: It depends.
What are your expected expenses? Develop a retirement budget. Things to consider:
- Income taxes on your retirement savings.
- Possible reduced expenses for clothing.
- Possible increased expenses for travel, eating out and entertainment.
- Increased health care expenses as you age.
- Will your mortgage be paid off?
- What other debts will you have?
- Will you continue to live in your current home?
- Decreased commuting costs.
- Increased costs for traveling to volunteer and leisure activities.
What other income will you have?
- Social security benefits.
- Part-time employment.
With this information in hand, your trusted financial advisor can help you develop a savings plan for your retirement. The sooner you start, the better chance you will have a comfortable retirement.Judith Ackland has more than 26 years of experience in accountancy and financial planning, including seventeen years as a CFO of a diverse business. She started Crystal Financial in 2010 to help a wide array of individuals, families, and business owners better understand their finances and how good financial management could help them achieve their goals. Judith has an MA in Professional Accountancy from the University of Nebraska at Lincoln as well as a Certified Public Accountant Certificate and a Certified Financial Planner designation.