How to Figure Out a Realistic Retirement Date
Should you jump ship and pack it into a more relaxing career?
With your hard work and discipline, you’ve built a thriving career. However, you may feel you’re burning out in your 20s and 30s.
What many people forget is that income comes from saving and investing during your career as well. We don’t want to live with regrets, so knowing your financial health is key to a realistic retirement date.
What is a realistic retirement date, and how do you go about figuring out one?
Keep reading to learn.
Estimate Life Expectancy
Use an online calculator to get a general idea of your life expectancy. The Social Security Administration’s (SSA) life expectancy calculator is a good place to start.
If you are in excellent health and have no family history of untimely death, you might be able to expect to live longer than the life expectancy specified by the SSA calculator.
Calculate Retirement Needs
You need to calculate how much money you will need to cover your costs in retirement savings.
This includes looking at things like your mortgage, utility bills, healthcare costs, and any other regular expenses you have. Once you have an estimate of your costs, you need to look at your savings and investments.
This will help you determine how much money you will have to put away each month to reach your retirement goals.
If you need advice before retirement, read more here and book your free wealth assessment.
Determine Retirement Income Source
Also, consider your retirement income sources. You will need to determine how much money you will need to live on each month and where that money will come from. Your sources of income may include Social Security, a pension, savings, and investments.
You will need to make sure that your income sources will be enough to cover your monthly expenses.
Plan for Healthcare in Retirement
Healthcare costs can be one of the biggest expenses in retirement, so it is important to have a plan to cover these costs. There are several ways to do this, such as buying a long-term care insurance policy or investing in a health savings account.
With careful planning, you can figure out a realistic retirement date that works for you.
Manage Inflation in Retirement
Inflation is also a factor to consider. Retirement savings can rise over time, so you’ll need to make sure you have enough saved to cover those increased costs.
A realistic retirement date is one that all these factors and gives you a date that you can realistically achieve.
Consider These Retirement Date Factors
If you want to figure out a realistic retirement date, there are a few things you need to consider.
You need to think about how much money you will need to have saved. Think about how much money you can realistically save each month. Finally, you need to think about when you want to retire.
Once you have considered all the factors, you will come up with a realistic retirement calculation.
For more retirement tips and helpful articles like this, please check out the rest of our site!