How Much Money You Need To Save For Retirement?
If you are about to retire, there are a few things that you have to consider in order to live a
peaceful and secure life. You have to think about when you plan to retire, what lifestyle you
want and of course, the amount of money that you have to save in order to cover everything by
the time you retire. Here are a few retirement tips that you should consider.
1. The first thing you should do is to calculate your current expenses and you have to list them
down. By the time you retire, you should have saved at least 65-70 percent of your entire
savings while you were working. This rule may not be truly applicable to everyone since people
are retiring in good health. You have to consider your rent, your daily allowance, your groceries,
utilities and even your health expenses as soon as your retire.
2. Just to make sure that you are covered if in case something huge happens during your
retirement, you have to have enough money or a bigger income to cover yourself. You can also
cut down on your costs right now to start saving more money for your future. You also have to
decide what kind of lifestyle you want when you retire, what neighborhood you’re going to live
in, do you want to stay in a big or a small house etc.
3. It would be wise to consider the inflation every year. Life becomes more and more expensive
every year so you have to be prepared for the increase after you retire. If you still have 5 to 10
years before you retire, you should expect an inflation rate of at least 3%, though it may not be
realistic, the best thing to do is to prepare for the worse.
4. Make sure you do a credit check before you retire. You score will be very helpful in getting
you a loan or for your insurance. Check credit scores regularly and make sure that you pay off
all of your debts and other balances that may give you bigger problems in the future. It is also a
good practice to pay all of your bills on time to avoid hurting you credit score. You will also get
better benefits and you’ll be able to save more money if your credit rating is good.
5. You have to have an emergency fund just in case something comes up. Don’t count this in
your retirement accounts but don’t forget to allot money for this.
6. Make sure that you create a plan that is realistic and attainable in order to get the best out of
everything. You wouldn’t want to worry about finances as soon as you’re retired don’t you?
Think about your retirement early on and start saving up for it. Follow these tips and have the
best retirement ever.
Joy is an active blogger who is fond of sharing interesting finance management tips to
encourage people to manage their personal finances. More specifically, she advocates that
people check and improve their credit reports regularly. Follow Joy and discover how to manage
finances after retirement.