The math gets complicated fast, because there are so many variables. How much to save depends on things like your future wage growth, inflation, longevity, future spending needs, what year you hope to retire, and whether you have a defined pension in addition to Social Security.
What does it really take to retire? How much should I save?
A recent article in The Christian Science Monitor, titled “Retirement planning 101: Seven questions you need to answer,” takes a deep dive into this important matter. As the article notes, the core of the typical retirement plan is the goal of building assets that will provide income, alongside Social Security and other sources, during retirement. But how much is enough? The Christian Science Monitor admits that the math gets complicated fast due to a host of factors.
How much to save depends on variables such as your future wage growth, inflation, longevity, future spending needs, what year you hope to retire, and whether you have a defined pension in addition to Social Security.
Many families find it helpful to consult an estate planning attorney who, along with their financial planner, to design a strategy and set a savings target, along with other steps in retirement planning. The other steps include the essential consideration of beneficiary designations and potential trust arrangements.
The article emphasizes that doing something is much better than doing nothing. So set a goal and keep saving. You can always revise or improve your plans as you move forward.
Start saving and planning today!