Want to stop working someday and retire?
It takes money to make that happen.
If you dont know how much you will need, youre in the majority.
Tina Russell/The Penny Hoarder
Most people put it off, because its something thats so far out.
They say well, Ill save next year.
How Much Do I Need to Retire?
What you need will depend on when you plan to retire.
Traditional retirement age is 65 to 67.
If that is your targeted age, plan on funding your retirement for about 25 to 30 years.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
I dont really know where those numbers come from, he said.
They come from every article that you read, experts say X percent.
Did you know?
There is no magic number that is the perfect target for everyones retirement.
The amount is based on several factors.
To answer the how much do I need to retire?
question, you gotta figure out what you want out of your retirement.
There are several online calculators that will help you figure out how much you will need.
Once you plug in the numbers, the calculators will show you whether or not you are on track.
That matters because many retirement accounts grow tax-free, while others are funded with after-tax money.
Now think about what you want to change when you retire.
Do you want to travel more?
Add those amounts to your current spending.
Also, add money for irregular expenses, like home and vehicle repairs.
Now, take away things you will no longer need to do when you are retired.
You wont be setting aside money for retirement anymore since youll already be retired.
You might have your mortgage paid off, so that will not be an expense.
If you wont be working at all, you wont have payroll taxes to pay.
Remember, the replacement income can come from a variety of places, not just savings and retirement accounts.
Other sources include Social Security, part-time work, pensions and rental income.
To use this calculator, you will need to create an online account.
But the leave-it-alone strategy usually isnt the best way to grow your money.
Youre in the best position you could be in.
If you start putting away money now for your retirement, you should be in good shape.
But no matter how old you are, itsnever too late to start saving for retirement.
She likes to save money so she can travel more.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
