Will you have enough money to retire? How much do you need to retire?
While there are retirement formulas to help you figure this out, financial advisor Matt Dixon, in this article from Forbes, says there are six key factors to consider that will impact how much money you have once you retire that these formulas don’t take into account. For a well planned retirement savings plan, rather than randomly putting aside money in the hopes you’ll save enough to retire, consider these six factors.
- Remember that you’re no longer saving money. Once you retire, that’s when you stop contributing to your savings and start drawing for them. Whatever you’re contributing monthly to your retirement savings, subtract that from the amount of money you’re estimating you’ll need come retirement.
- Consider how long you’ll live. Although you can’t predict this definitively, consider the national life expectancy (which has been increasing), and factor that in when planning your retirement savings so that you don’t outlive your retirement funds.
For the other four factors you need to keep in mind when it comes to your retirement savings, read the full Forbes article here.