It's a common question: How much do I need to save for retirement?
The truth is, there's no one-size-fits-all approach to retirement planning because everyone's situation is unique. Many personal factors can impact your savings goal, including the age you plan to retire, your health needs and how you want to live in retirement.
If you're wondering how much you need to retire, you're already thinking about retirement—and that's a great place to start! Here are some other important questions to consider as you plan and budget for a happy retirement:
What's your dream retirement lifestyle?
Even if your retirement is decades away, it's worth thinking about your ideal retirement lifestyle. This will help you understand how much you need to save and keep you motivated to reach your goal.
Everyone's perfect retirement looks different depending on their goals and priorities. For example, some people are content with a simple retirement, relaxing at home and spending time with family and friends. Other retirees want to experience the excitement of traveling and new activities in their golden years.
To help define your ideal retirement lifestyle, here are a few points to consider:
If you have a spouse or partner, it's important to have these conversations as a couple so you can save and plan for the future together!
Are you prepared for all retirement expenses?
By the time you reach retirement age, some of your expenses will likely shrink, such as transportation and housing costs. But you can also expect some expenses to increase as you grow older, especially when it comes to health care. It's estimated that the average couple may need $295,000 saved for health care expenses in retirement, not including the cost of long-term care.
What's your current retirement outlook?
Even if you have a specific savings goal in mind, it's important to re-evaluate your retirement preparedness on an ongoing basis. Use a pre-retirement calculator to help you understand how well you have prepared so far and what you can do to improve your retirement outlook. Keep in mind that inflation, fluctuations in the economy and changes to your personal situation may affect your future retirement income.
It's not too early—or too late—to save for retirement, but the sooner you can start, the better! Getting a head start can give your money more potential to grow—and that may make all the difference in the size of your nest egg.
Plan for the life you want to live!
No matter where you are in life, you can take steps to build your retirement savings and set yourself up for a more comfortable financial future. Best of all, you don't have to navigate the retirement journey alone!
The experienced CFS* financial advisors and registered representatives on Wright-Patt Credit Union's Retirement Solutions Team, available through CFS*, are here to help you develop a financial plan that will help you make your goals a reality. Learn more and contact us to set up a complimentary, no-obligation meeting and get started!