Retirement income should be around 80% of pre-retirement earnings, according to experts. Fidelity Investments suggests saving 10 times your annual income by age 67. However, individual factors such as healthcare costs, inflation, and desired lifestyle should also be considered. Regularly reviewing and adjusting a retirement plan is crucial for financial stability in later years. Aim for a comfortable retirement by planning ahead and taking into account all relevant factors.
How Much Do I Need to Retire?
Many experts maintain that retirement income should be about 80% of a couple’s final pre-retirement annual earnings. This means that if a couple earns $100,000 a year before retirement, they should aim for an annual retirement income of $80,000. This may seem like a daunting goal, but it is achievable with proper planning and saving.
Saving for Retirement
Fidelity Investments recommends that you should save 10 times your annual income by age 67. For example, if you earn $50,000 a year, you should have $500,000 saved by the time you reach age 67. This may seem like a lot, but it is important to start saving early and consistently to reach this goal.
Factors to Consider
It is important to consider your individual circumstances when planning for retirement. Factors such as your desired lifestyle in retirement, healthcare costs, and potential inflation should be taken into account. It is also important to regularly review and adjust your retirement plan as needed.
In conclusion, planning for retirement is crucial for financial stability in later years. Experts recommend aiming for a retirement income of 80% of your final pre-retirement earnings and saving 10 times your annual income by age 67. However, individual circumstances should also be taken into account when planning for retirement. Regularly reviewing and adjusting your retirement plan can help ensure a comfortable and secure retirement.
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