What is retirement planning?
Improved medical science and health care means that people are living longer. And longevity of life means that you will spend many more years in retirement than your parents and grandparents did. You need your retirement income to have solid “staying power” during your retirement years. So … whether you are 25 or 65 years old, retirement planning is the process of preparing for financial stability through your retirement years.
How much income will you need during your retirement years?
This is a great question, but it comes with a complex answer. Most financial experts advise their clients to plan on needing at least 70% of their pre-retirement income. The actual amount that you will need will depend on several factors, some of which can be planned (such as how long you plan to work, and whether you plan on paying off your debts before retirement) and some unknowns (such as unexpected health issues). In addition, your preferred lifestyle will affect the amount of income you’ll need and whether it will outlast your savings.
Before you retire, it is wise to consider the following questions and discuss them with your spouse or significant other:
