Wondering how much you need to save for retirement? Here are some factors to consider
Professionals at all levels of their careers need to be thinking about retirement now. Whether you are closing in on retirement age or you are a young professional just starting out, you need to invest in your retirement plan if you want to live out your retirement years in comfort.
When considering how much to save for retirement, there are a few guidelines to keep in mind. Most advisors recommend that you plan to live off of at least 70% to 80% of your pre-retirement income during your retirement years. Another way to think of how much to save is that out of your total retirement savings, you should be able to live off of 4% of it per year. However, determining how much you need to start saving right now to be able to live off of 4% per year requires some thought.
Determining how much to save for retirement
One way to gain an idea of how much you should save for retirement would be to use a retirement calculator. A retirement calculator can show you how well on the way you are to enough savings to live off of 4% of it per year. You can find several of these online that are free to use. We like this one from nerdwallet. It’s free, simple to use, and provides a clear answer on how much it thinks you should be saving.
Tools like retirement calculators have their limits, though. They cannot take into account the more nuanced factors that make up who you are, what you do, and what you believe. A retirement calculator is an excellent way to get started understanding your retirement goals, but talking to a financial advisor can help you develop a plan more tailored and suitable to you.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals take the time to get to know you, your goals, and the beliefs that drive you. We take all of these factors, as well as your risk-tolerance level, to draft a personalized financial plan to help you reach your retirement goals and we do so at a fiduciary standard of care, always putting your interest first and foremost.
Talk to a ProVise CFP® professional about how much you need to save for retirement
Planning for retirement on your own can be challenging in the ever-changing financial landscape. Without a guide to walk you through this landscape, you can end up missing your goal by a wide margin. Our team at ProVise is here to be your guide. We are highly skilled in navigating the financial landscape and helping you reach your retirement goals, such as having adequate savings to support your life and lifestyle in retirement.
We can analyze your current circumstances and goals to draft a plan at a fiduciary standard of care. All of our written plans come with an unconditional money-back guarantee. If you’re unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about developing a personalized plan to reach your retirement goals, so you can focus more on enjoying your life now? Contact ProVise today to schedule a complimentary consultation.