How to establish the right amount of money to retire with
Rather than relying on general rules to understand how much you need to save for retirement, financial planners advocate for another approach. Sit down with your plans and desires for the future, so to speak, and establish a “magic number” that fits the description. Here’s what you need to do to determine how much you’ll need for retirement:
- Estimate your future retirement income from various sources, like Social Security and other pensions.
- Calculate the expected expenses, depending on debt and lifestyle choices.
- Determine any unpleasant outcomes that you might have to cover with retirement savings.
