There are no easy answers when it comes to planning for retirement. Everyone is different, and will have unique needs and plans for their retirement. It’s never to late to start developing a solid strategy for your retirement.
When you start to plan and at what age you plan to retire varies. These ages will depend on what your goals are and how much you’ll need to live the life you want after you are finished working.
How much does it cost for you to live? This will change based on inflation rates. Remember, your monthly expenses will be quite different today than what they’ll be 10 years down the road. Some will be more and some will be less.
From the interest you are gaining in your savings account and investments to how much intereste you’re paying on your mortgage, it all affects your bottom line and timeline for retirement.
For your retirement, figure out how much money you’ll need every year. Ideally experts say that you should have approximately 70% of what your peak salary was while working.
Many people supplement their retirement with their pension. You can get more details on what you can expect here.
If you want to get a more solid understanding of just how much you’ll need, check out this Retirement Calculator.
Speaking to an advisor at your financial institution is always a good idea. They’ll take the time to consider your situation, and help you create a plan that’s based on your particular circumstances, goals, etc.
Here are some things you may want to consider asking before you meet with a financial advisor or personal banking representative. Beyond the basic living expenses for retirement, you may be in a position after your working years to do more things than you currently do now. If you’re young and not thinking about retirement, it’s easy to live paycheck to paycheck and not consider the future.
Here are some important factors when building your vision of retirement:
Make a list of all the things you’d like to do once you have more time: