When you think of retirement planning, you may be focusing on one question: How much money do I need? Unfortunately, there isn't a singular answer to that question that will satisfy everyone's needs. In addition, there are many more questions you should ask yourself before making a solid plan or quitting your job.
What are my expectations for retirement? Your retirement may not be anything like your neighbor's retirement,so there is no set amount of money everyone must save before they stop working. You deserve to enjoy this special time after decades of hard work, but your goals are as unique as you are. Where you plan to live, the hobbies you hope to pursue, and even factors such as your social life will influence your budget in retirement. Don't worry about Jim next door and his retirement savings goal; worry about yourself and your own goals.
How much will health care cost? When you first think of your expected retirement budget, you're probably calculating items like housing, food, travel, and so on. But don't forget that you could experience unforeseen medical bills, from expensive prescriptions or even a long stay in a nursing facility. Consider whether your insurance is adequate to cover unexpected health care costs, and plan a little more room in your budget to cover them.
How many years will I spend in retirement? Rather than focusing on how much money you need, ask yourself how long you will need it. Of course, you don't have a crystal ball, so you'll have to guess about your life expectancy based on your current state of health, your parents' longevity, and other factors. Knowing how long you need to live on your retirement savings can help you figure out how much you need to save.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.