With company pension plans becoming less prominent and uncertainty surrounding Social Security, planning for your retirement is now more important than ever. The fear of outliving one’s retirement savings is ever present as society is faced with longer life expectancies and a continuous rise in the cost of living. However, living the retirement you’ve always dreamed about can be a reality. All it takes is proper planning. When planning for your senior years, the first thing to do is to think about what kind of life you would like to have.
Experts estimate that annual retirement needs could range anywhere from 70% to 100% of your current income. Once you have established the amount you’ll need to live on during your retirement years, you can review your current savings and retirement benefits, including funds from company retirement plans and Social Security. You’ll also want to review your assets and liabilities and determine how much debt you’ll still have at retirement. After you’ve estimated what it would cost you to retire today, factor in the cost of inflation in order to give you a better idea of how much retirement funds you’ll actually need.
Planning for retirement as early as possible may be the key to accumulating the funds you’ll need to live out your future goals. An investment professional can help you determine a savings strategy that will help you pursue the retirement you’ve always wanted. Stephen N. Jones is a Senior Vice President/ Investments with Stifel, Nicolaus & Company, Incorporated, Member SIPC and New York Stock Exchange, and can be contacted in the Florence office at 1325 Cherokee Road, or by phone at (843) 665-7599 or toll-free at (866) 850-6995.