How Much Is Needed for Retirement?
Posted by admin in Retirement
People are often asking how much should be in savings for retirement when they reach retirement age? It is, of course, a good question, but one that is not easily answered. Most people want a comfortable retirement, and some want it absolutely luxurious.
According to Money.cnn.com, they say that it is a rule of thumb that you should have about 70% of your income available for each year of retirement. If that figure is used as a basis, then you must also consider what your needs are above the cost of living.
If you still have some debts to pay after you enter retirement, then this will have to be paid for sooner or later. Also, it depends on what kind of life you want to have after retirement. If you have some big retirement plans, such as traveling around the world, then it will take considerably more money to do this.
In most cases, people will not be very happy with a social security retirement. It simply is not enough money to live on. Cuts in Medicare may also be coming soon, now that the new medical insurance laws and coverage are getting ready to be changed. It is a good idea to have all your debts paid when you retire.
Don't forget, too, that out of your retirement investment money some taxes will have to be paid. It is not tax free – just reduced taxes, which will help.
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