For some strange reason, too many of us wait until we’re in our mid-age range to get serious about retirement funds. At Joseph Andolino and Associates, we typically ask every age group how much annual income will you need during retirement.
Would you believe you’ll need to have approximately 70 to 80 percent of your current gross income to maintain your current standard of living? Of course, this varies widely depending on how you live now, but it gives you a good idea of how big of a nest egg you’ll need when you stop working.
Basically, here’s the Joseph Andolino quick and dirty snapshot of figuring out retirement funds you’ll require;
- During retirement you will pay less in taxes, but you also save less
- During retirement you will spend less on children’s needs
- You should have less or no mortgage to pay
But while many expenses decrease, there will also be some that will increase.
- Healthcare expenses may increase
- Travel expenses tend to increase
- Hobbies and Recreation expenses tend to increase
You want figure out your new cost-of-living minus your monthly income. Then, perform an analysis for the year and that will give you a basic snapshot of how much money you have and how much more you need.
If you missed the last post, please review and join me for the next one.