How much money do you have saved for retirement?
More specifically, how much money do you think you’ll need to live comfortably when you retire?
Obviously, the answer to the second question revolves around a complicated set of formulas based on how long you think you’re going to live and when you’re planning to retire. Where you’re going to live. Whether you are concerned about just your own expenses or if you’re supporting others (or having children take care of you).
Some experts have said that you should try living on just 25% of your current salary for a year, just to see if you could afford retirement spending in your current mindset. If not, maybe you need to adjust your retirement plan a little bit.
Using some quick math, Web Watch figures that if you expect to spend $2500/month on basic living expenses (a rather high figure, but it includes house or rent payments), then you’re looking at $30,000 a year at a minimum. Assume that you’re retired from 65 and live another 20 years, then you’ll need $600,000 — and that’s if payments don’t increase over that time.
Yeah. Try doubling that figure, just to get by. That’s $1.2 million. Pocket change for most of us, right?
Nobody said retirement was going to be easy.
That’s when financial planners decide to offer some advice to retirees on NINE EXPENSES THAT SHOULD BE CUT IN RETIREMENT in order to save some extra money when those incomes dry up.
Some of the suggestions include:
- No more eating out at restaurants
- Own just one car, not two (or more)
- No more house payments. You really should own your home by the time you retire
- Maid service