How a lot cash you must have in your retirement accounts, by present age

Your current salary can be used to estimate how much money you will need to retire.

People should retire on around ten times their current income. according to a benchmark list compiled by Fidelity.

The amount of money you need will need to be adjusted to fund your desired lifestyle, but using these numbers as a guide should help you retire in comfort.

Watch the video to learn how much you should have for retirement at the age of 30, 40, 50 and beyond.

More from Invest in You:
How do I explain the stock market vs. the economy
The power of compounding can help you keep doubling your money
Volatility shouldn’t scare you, even near retirement

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Your Cash: 5 causes you would possibly contemplate partial retirement

One financial advisor says he’s seeing more and more people in their early 60s retiring part-time for a variety of reasons

SAINT LOUIS, Mon .– During the COVID-19 pandemic, many people considered quitting work. If you are in the latter half of your career, there are a few things to consider if you want to go into partial retirement.

Jeff Sachs of Sachs Financial in Creve Coeur says his office is busier than ever when he’s trying to help people figure out whether to keep working or dropping out.

“Partial retirement is a relatively new concept,” said Sachs. “It used to be that when you retired you were done with work and you didn’t have to continue or you had a reason to continue.”

Sachs says he talks about retirement all the time with his clients, and here are five reasons you might consider before starting part-time work:

You are not satisfied with your retirement savings

Depending on where you retire, you may need more in the bank account. The Institute for Health Metrics and Evaluation has ranked each state, and Missouri has the eleventh lowest overall retirement estimate at $ 952,000. Illinois has the 20th highest value which is just under $ 1.1 million.

“One in four Americans don’t save for retirement,” Sachs said. “Or if they are, they haven’t saved enough. If you’re in this boat, you might have to work a little longer and postpone Social Security.”

They expect a longer life

Most of us plan to live longer than the generation before us, even though the pandemic has reduced our life expectancy by 1.5 years in 2020, according to the Centers for Disease Control. Still, life expectancy in the United States fell to 77.3 years. If you retire at the age of 65 when Medicare kicks in, you will need more than a decade in savings.

It speaks for itself – if you love your job and still can work, why leave?

You like to have some structure in your life

Sachs says he’s talking to his clients about what their retirement should look like.

“You can’t sit at home and watch TV all day,” said Sachs. “You can’t play golf all day. You can’t say, ‘I’ll paint every day in my retirement.’ Studies have shown that people who do not have this structure become depressed and lose the reason to leave the house. “

Even volunteering at attractions like Grant’s Farm or a local hospital can be a great way to add structure, he says.

You want to go into retirement relaxed

Most people come to Sachs in their early 60s to talk about partial retirement.

“It’s getting more and more,” Sachs said. “You want to retire to get that early social security, or you’re just fed up with work and want to spend your 60s and 70s traveling but you don’t have health care.”

Sachs says if you can you should wait to apply for Social Security when you’re ready to retire, but the years in between can be difficult.

Sachs also says there has been talk of the Biden government considering lowering the age for Medicare eligibility, and if that did happen, many seniors would feel like they would have more freedom to retire.

Extra APD officers are placing cash in direction of retirement

“When you look at the stresses and strains of law enforcement across the country, you have to see that people are leaving the job. We have a lot of crime, we have a shortage of officials, we have a settlement agreement, ”he said.

Some officers spend their own money to qualify for retirement sooner.

The Public Employees Retirement Association (PERA) keeps track of so-called “airtime credits”.

Every civil servant can use his or her own money to buy a loan – in order to be entitled to old-age pensions a year earlier.

The data received from KOB 4 shows that 2014 was a year when retirements peaked. More than 30 officers bought retirement time.

This year – just 8 months later – at least 26 officers bought time to retire.

The Albuquerque Police Officers Association explains why the 2014 number is so high.

“That doesn’t surprise me, it would most likely have been the changes in our pension system in 2013. Because it was good for the civil servant to retire earlier.”

Now the number of civil servants who want to buy time to retire is increasing.

“The Albuquerque police officers are absolutely unhappy. They do not feel supported by this government. They do not feel that they can do their jobs successfully. We saw an explosion of police officers leaving this department.”

The data provided by APD shows the department is well on its way to having over 120 officers leaving the department this year. Willougbhy says 81 left last year.

“Yes, there are problems that have brought us to where we are now, but we need time. I need time.”

Medina said he was working on solutions.

“We rolled back the disciplinary process, which was a big step. The Justice Department itself told me a year ago they probably didn’t have the talks to get that back. But now they’ve turned it back for us because they see we’re trying to going in the right direction, ”said Medina.

These dates are not a perfect indicator of officials who are dissatisfied in the department, sometimes it’s a purely financial move. For example, Medina said he was one of the officials who bought time in 2014 when benefits changed.

5 Methods Millennial Cash Honey Is Utilizing to Attain Early Retirement

If you shop through our links, Insider can earn an affiliate commission. Learn more.

Catie T. who bears the name Millennial money honey on her various social media platforms plans to retire at 35. At 29, according to insider documents, she is only six years away from her goal. And about 30 years ahead of most other people their age.

Catie is part of the FIRE (financial independence / early retirement) community; It’s a movement that came from a 1992 book entitled “Your Money, Your Life” by Vicki Robin and Joe Dominguez.

Corresponding Investopedia, Millennials – who were kids when the book was published – are increasingly the generation embracing FIRE. It is characterized by aggressive savings and investment practices that allow participants to be unemployed before the traditional age of 65.

“I’ve just lived the average millennial life in LA, hanging out with my friends, doing my hair and trying to keep up with the latest fashion trends,” said Catie of her lifestyle before embarking on her FIRE trip.

But at 26, she was at a point in her career where she was making enough money to build decent savings and start thinking more seriously about her financial future.

“I was like, ‘When people are investing, I know I should be investing. I should look at this and find out,” she says. She started doing personal finance research and eventually learned about the FIRE ideology. “I came in headfirst,” she says.

It recently reached an impressive milestone which is known as “Coast FIRE. “Assuming $ 375,000 deposited in various accounts regular market trends, her savings will grow so much that she won’t have to invest another dollar to become financially independent at 65. In this way, it can “expire” into retirement without any problems.

While this is a great accomplishment and an important step in her journey, Catie plans to continue saving and investing at her current rates so she can meet her retirement goal – $ 1.5 million saved and invested – by 35 .

As she gets closer to her ultimate goal of retiring at 35, she shares her journey and the strategies she has implemented in hopes of inspiring others in financial independence as well. That’s how she got this far so quickly.

How she set her retirement goal

To find out how much she needed to save, “I estimated my yearly spending to be about $ 30,000 a year, and then I doubled it just to allow for a margin of safety,” she explains.

For example, suppose she needs $ 60,000 for each year of retirement, she has it 4% rule to determine their target amount for the annuity portfolio. An easy way to work out this number is to multiply your desired annual income by 25, which Catie did and gave her $ 1.5 million.

“It would only be $ 750,000 for me, but I’m just on the nervous and cautious side,” she said. Doubling their annual amount provides them with convenience and a safety net.

1. She tracked – and changed – her spending habits

Before making any major lifestyle changes, she tracked her expenses for a few months to get a better picture of her financial condition. “I didn’t even know where my money was going beforehand,” she explains.

After that, she was able to be more strategic with her decisions. It’s about figuring out those “little tweaks,” she says.

For example, Catie quickly found that she was spending more money on personal hygiene and aesthetic services than she wanted. Between an Equinox membership of $ 230 a month, an eyelash appointment for $ 30 every three weeks, and about $ 600 twice a year for hair treatments, she found she got about $ 1,000 every three months for them Purchases made.

So she got creative about how to minimize it. For starters, she let her hair grow back to its natural color instead of keeping a pale blonde hue that she had before. She quit Equinox, stopped having her eyelashes done, and gave up the fancy hair salon in favor of a local ad with a $ 15 cut.

2. She has increased her income

A graphic designer by profession, she has taken a strategic career move to grow her income quickly and save more money by default. Before FIRE, Catie worked for an advertising agency and Industry known for lower wages.

“I was able to steer my same skills toward a higher paying industry,” she says. Now she works as a graphic designer for a technology company. “I didn’t know how much more lucrative it was to be a designer in this field, even though the skills are exactly the same.”

It wasn’t much of a linchpin, there was no need to go back to school or invest in additional education, but “it was about being creative about how I could increase my income,” she says.

3. She invests her money in various investment accounts

While a big aspect of being successful at FIRE is cutting costs and saving aggressively, arguably the most important part is investing that money.

Due to inflation, for most people, the path to retirement involves at least some form of investment, be it through a 401 (k), 403 (b), IRA, or other selected account. The same goes for those who want to achieve FIRE.

Catie had saved about $ 30,000 prior to her FIRE trip, which she invested in a wealth front

Robo-Advisor
Account. Now the majority of their income is invested between their employer-matched 401 (k), their Roth IRA, and their HSA (Health Savings Account).

Outside of these accounts, it invests almost exclusively in index funds. “I’m a total stock exchange fund at Schwab,” she says.

4. Because of the COVID-19 pandemic, she moved back in with her parents

Although it was never originally part of her plan, she moved back to live with her parents due to the pandemic. Since she lives rent-free, she was able to drastically reduce her expenses in the past year.

“‘I’m very fortunate that my parents let me live rent-free to help me with my dream,” she says. This change has helped accelerate your invested income.

5. While saving a large portion of her income, she still enjoys life

Catie saves about 80% of her income, a common percentage for many who participate in FIRE. But for some, this high savings rate is one of the most unattractive qualities of the movement.

It is often assumed that putting so much aside must also mean depriving yourself of today’s joys.

But she doesn’t live like that. “I am extremely conscious of my expenses,” she explains. She still goes out to eat and drink with friends. She will spend money on travel – if the pandemic allows it. “I found out what makes me happy,” she says.

To do the things she loves, she cuts out other things, like expensive clothes or hair treatments. She doesn’t plan her daily expenses, but she knows her expenses and makes sure that she always has enough in her checking account to cover them.

She also makes sure that she uses some of her money to celebrate her victories and milestones. “It’s a long journey, it doesn’t happen overnight, it will take years and years,” she says. But she is determined to enjoy the ride as much as the destination.

More coverage for personal finances

9 retirement planning tricks to keep away from operating out of cash

How can someone effectively plan their retirement so they don’t run out of money?

In order to give you the security that you will not run out of money even in retirement, we have asked financial experts and management consultants this question for their best advice. From opening a Roth IRA to investing in real estate, there are several tips that can help you Plan your retirement effectively so you don’t run out of money.

ALSO READ: This is how the growing wealth of women is affecting business

Here are nine retirement tips to avoid running out of money:

  • Double check your policy
  • Start as early as possible
  • Plan for inflation and additional expenses
  • Open a Roth IRA
  • Take into account time and resources
  • Find passive income investments
  • Invest in real estate
  • Review your company’s 401K plan
  • Work with a retirement advisor

Double check your policy

One of the first things that you should do before retiring is to make sure that your life insurance is still active. You also want to determine whether you can still maintain your policy with your retirement income and savings. The last thing you want is your life insurance to expire, especially when you need it most. It is also more expensive to get new life insurance later in life, so plan accordingly.

Chris Abrams, Abrams insurance solutions

Start as early as possible

It’s never too early to start planning for retirement. With your first job, start investing in a retirement account and keep doing it until you retire. By consistently investing and diversifying your 401K investment portfolio, you should never have to worry about running out of money, especially when you need it most. It is not enough to simply put your money in the bank. If you have the opportunity, take advantage of your company’s 401K match. But if that’s not an option, start your own IRA and contribute as much as you can as early as you can.

Ronniba Pemberton, Markitors

Plan for inflation and additional expenses

A smart way to plan your retirement is to calculate the money you need during the inflation adjustment and then buffer that amount by an additional 20-25%. It’s almost impossible to calculate how much you really need, but a good rule of thumb is to assume that you need more than you expect. Be generous with yourself, not so much to live in opulence and luxury as to predict wisely that you will live longer, that healthcare costs could be higher, or that inflation could rise even in your golden years. Therefore, in addition to the standard daily costs, it is advisable to look beyond the obvious and anticipate many different costs that may arise in the future.

Anna Berkolec, CVLab

Open a Roth IRA

Not every first “real” job offers a retirement plan like a 401k. The best advice I can give is, once your paycheck comfortably covers your bills, open a Roth IRA and start stashing money. It is a tax free way to multiply your money and also withdraw the money. You could put away as little as $ 100 a month. Getting used to putting money away is a good habit and can help you understand how retirement planning works.

Bailey Mosley, Brewery Pedal House

Take into account time and resources

I’ve been helping clients with retirement provision for almost a decade. The most important factor is time because it is never too early to start saving. Start asap and don’t stop. The power of compound interest is amazing. A couple’s high earners should postpone social security for as long as possible, ideally until they are 70 years old. Pension and annuity). It is also important to know what your monthly expenses are and if they change as you retire. The monthly need is crucial to consolidate. We can then see how much is guaranteed and what the gap is, then we need to assess how much income we can get from investing to fill that gap, taking into account taxes and inflation as well. It is important to work with a professional who can assess your individual situation and advise you individually.

Alison Stine, Stine wealth management

Find passive income investments

Plan your retirement early and with solid passive income investments. You want to make sure you have good investments that can still bring you income after you retire. That way, on top of what you’ve already saved up for retirement, you have that little something extra. This method will also help you avoid running out of money in retirement.

Tri Nguyen, Network capital

Invest in real estate

One of the best ways to prepare for retirement is to invest in real estate. Real estate investing has the power to create passive income streams that don’t require your active participation, as would a 9-5 job. Monthly income from real estate can offset investors’ expenses and put money back in their pockets. Over time, the initial money earned on the investment will be paid back and a positive return will be achieved. The passive income that every investment generates enables successful investors to control their time and live the lifestyle and retirement they desire.

As Merrill, Fortune Builder

Review your company’s 401K plan

A person can effectively plan for retirement so that they don’t run out of money by starting their 401 (k) plan. Many companies offer their employees a 401 (k) plan that everyone needs. Some companies even offset your contribution. If your company offers this, make sure you deposit an amount that they can match with you. Setting aside money for your 401 (k) can provide an effective retirement as it is money that is deducted from your paycheck with no tax deducted. Hence, it is important not to touch any money in your 401 (k) so that it can be used properly and saved for retirement. In the end, a small investment in your 401 (k) will go a long way towards your retirement.

Jacob Dayan, Community tax

Work with a retirement advisor

A great way to plan your retirement so you don’t run out of money is to come up with a plan with the help of a professional pension advisor. They can help you come up with a thorough plan that incorporates inflation, your social security benefits, and other monthly income just enough so that you can put your money to work for you in retirement. The very thought of retirement can be scary for many people. So taking the time to work with a professional in the field can go a long way towards alleviating these fears.

Shaun Prize, MitoQ

Terkel creates community-driven content with expert knowledge. Sign in to terkel.io to answer questions and get published.

Zac Efron and brother Dylan sneak their grandpa out his resort-​fashion retirement house: Video

Zac Efron has reportedly teamed up with his younger brother Dylan to “get” their grandfather out of his nursing home for fun.

Efron – who starred in the 2016 film Dirty Grandpa with Robert De Niro, made mischief with his own grandfather.

The two brothers teamed up to get their grandfather out of his resort-style retirement home for some time.

As he strolled through the retirement home on tiptoe, the 33-year-old actor did his best to remain invisible as he ducked low before going through an employee’s ID to gain access to his grandfather’s room.

“Let’s get Grandpa out of here,” said the high school musical alum in the first few seconds of a cheeky video he posted on his Instagram account.

He titled the post: “We are coming Grandpa!”

The Greatest Showman star once showed off his athletic skills when he did a somersault before excitedly meeting up with his grandfather, who was ready to go.

Zac Efron rolled his grandpa down the hall and past other residents before they went home to watch a soccer game.

The place can you discover the cash to construct a secure, predictable retirement? | Enterprise

“You will likely be retired a lot longer than you think. A recent study suggests that 50% of those born now will live to be over 100 years old. ”- Lyle Boss

How long do you think you will live Do you think you’ll live until your late 70s? Are you confident that you will follow the path of your parents, who were in the mid to late 80s?

The average joint life expectancy (men and women together) is around 88 years for over 49% of the population. A whopping 20% ​​of Americans live to be 95!

Depending on your unique perspective, this is either good news or bad news. It is good because many people want to live as long as possible provided they are physically and mentally healthy. However, living long life can be bad news if you risk surviving your money in retirement.

It should also be noted that these numbers are average values. There are many exceptions to the rule, especially if you have excellent genes, have tried to stay fit and healthy, and managed stress properly. More and more people are hitting three-digit numbers, and you could very well be one of them.

Longevity is an option. Hence, creating a portfolio that will help you maintain your current standard of living in retirement over 30 years is a challenge. Having less money in retirement is a problem for retirees and early retirees. Almost all seniors know someone who beat the odds and lived longer than planned.

Many retirees and early retirees had someone in their own families who went through hardship and deprivation because they ran out of many at a time when they needed it most.

The logical solution to not having enough cash to retire is to start earlier and save more. However, this is not always easy. Many people barely get by and do not have a lot of free money to earn a retirement income. You could fall into this category and worry about running out of money to build a retirement account.

How do you find money to finance a retirement plan?

Developing a mindset about saving and planning income is valuable at any age.

Understandably, you may be on a tight budget due to your professional career. Or, you have family, medical, or debt problems that make saving difficult.

Fortunately, there are a few ways you can free up cash or find the money you never knew you would need to fund a retirement plan. Here are three things you can do right now to free up cash for retirement.

1. Debt rescheduling. Look at all of your debts, including student loans and consumer debt. Maybe you can negotiate lower interest rates or pay off debts more slowly. For example, instead of paying more than the minimum amount on a debt, take that money and put on something like a dividend life insurance policy, retirement plan (depending on age), or dividend stocks. If you pay off your debts TOO quickly, you lose the opportunity to multiply that money.

2. IRA or 401 (k). Use every advantage to contribute the maximum amount of money allowed. As you get older, start moving a higher percentage into assets that are less volatile, such as annuities. Ask your financial professional and tax advisor if you could transfer your 401 (k) funds to a self-directed IRA and purchase an income pension. Always keep this in mind with the bigger picture in mind, make sure you seek licensed and authorized professional consultants.

3. Live a simpler lifestyle. If your car, large appliances, and other important items last longer, they can cost you thousands of dollars to help finance your life after your career. Eat out less, never pay full retail, and look for every bargain you can find.

Regardless of your current financial situation, you can and should save money for a time when you are no longer receiving a paycheck. Starting early and being consistent, along with making small lifestyle changes, will help you avoid common mistakes and achieve a better lifestyle in retirement.

Here is a word to the wise. Before making any decisions about where and how to invest your retirement benefits, always consult a licensed and authorized professional.

Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. Contact him at 801-475-9400 or safemoneylyleboss.com.

Cash Knowledge: A decade-by-decade information to saving for retirement | Enterprise

Each decade of adult life presents different challenges and opportunities. Our financial resources and goals also change, affecting our ability to save for retirement and the investments we choose.

Most people today rely on their personal savings, not a company pension, for a financially comfortable retirement. And almost anyone can benefit from a plan to help them cross the finish line. Here is a general plan of action organized by decades that can serve as a starting point.

This is the decade I encourage clients to start saving for retirement – and keep saving – even if they need to change the amount they are setting aside. When retirement is 30 years or more away, there is time to capitalize on wealth-accumulation skills.

One of the smartest ways to start saving is by joining a qualified retirement plan at work. If you can’t bring in the maximum percentage allowed by the plan (and most people that age probably can’t) it is wise to make enough contributions to get the equivalent of what an employer may offer.

People who have consistently saved for a decade must typically have an investment strategy in their forties. An investment strategy can range from conservative to aggressive and is based on a person’s tolerance for risk and their time frame for using the capital.

When retirement is decades away, the long time horizon often calls for an aggressive strategy that relies on riskier investments for capital appreciation, such as stocks and high yield bonds. These investments offer higher potential returns while at the same time increasing risk. I’ve found that most of my 40-year-old customers choose to grow rather than lose sleep over the long-term effects of the bear markets. Time is on their side, of course.

This is a decade where profits tend to peak. This higher salary offers the opportunity to apply the special catch-up provisions in qualified plans that start at the age of 50.

The higher income can also be used to clear out “bad” debts that have accumulated, such as: B. high credit card balances.

When you use debt wisely, for example when you have a mortgage on your home, the decision to pay off the loan will depend on your personal financial situation and your feelings about debt. I recommend having a professional advisor do the numbers before making a decision. That way, you can understand the financial implications of each choice.

As you approach retirement age, you are ready to turn your attention to income planning. These days, 30 year retirement is common, so I advise clients to plan on earning at least three decades.

In order to generate returns and reduce market risk, a more conservative investment strategy must be followed. Many people gradually move in this direction over their 50s and 60s to protect their wealth and get some capital appreciation in the years to come.

What I have outlined here is a very general plan of action. For personalized recommendations, you should discuss your needs and goals with an experienced financial advisor. It’s never too early or too late to have this conversation.

Joel Johnson, a certified financial planner, is the managing partner of Johnson Brunetti, a Connecticut-based aging and investment firm. He is a resident of Tolland.

Boeing raises necessary retirement age for CEO Calhoun by 5 years, CFO to retire

Dave Calhoun, Boeing Chairman

Adam Jeffery | CNBC

Boeing It was announced on Tuesday that the mandatory retirement age of the 64-year-old CEO will be raised from 65 to 70 as the company continues to face challenges from the coronavirus pandemic, production problems and the aftermath of two crashes on its best-selling plane.

Boeing CFO Greg Smith will retire in July, the manufacturer said. Boeing said it was looking for a replacement.

“Under Dave’s strong leadership, Boeing has effectively mastered one of the most challenging and complex periods in its long history,” said Larry Kellner, Boeing chairman, in a press release. “Given the significant progress that Boeing has made under Dave’s leadership and the continuity required to thrive in our long cycle industry, the Board of Directors has determined that it is in the best interests of the company and its stakeholders to the board of directors and Dave allow the flexibility for him to continue in his role beyond the company’s normal retirement age. “

This is the latest news. Check for updates again.

Will you actually run out of cash throughout retirement?

((NerdWallet) – Many US households retire without enough money to maintain their standard of living before retirement. According to a recent study by David Blanchett, director of retirement research at Morningstar, and Warren Cormier, executive director of the Retirement Research Center for the Defined Contribution Institutional Investment Association, people cut their spending often enough to last for a living.

“People find a way to make it work,” says Blanchett.

The results challenge a common assumption in financial planning that retirees’ spending will increase each year with the rate of inflation. But research also shows that many people retire without a realistic understanding of how much they can safely spend.

Run out vs. become scarce

The fear of running out of money is widespread in the United States. Almost half of Americans have this concern, according to the Aegon Retirement Readiness Survey 2019. And their concerns may be well founded. A 2012 paper published for the National Bureau of Economic Research found that 46.1% of older adults with financial assets less than $ 10,000 died.

Of course, the phrase “no more money” is a bit misleading. The vast majority of U.S. retirees receive social security benefits that last for life. While they may be running out of savings and run out of money, they can’t really run out.

3. Stimulus Checks: Social Security beneficiaries could see $ 1,400 faster payments when IRS receives data

Still, few people enjoy the idea of ​​drastically cutting their retirement expenses or building a livelihood on $ 1,543 a month (the current average social security check).

Less spending slows the burn rate

Blanchett and Cormier studied 425 US households who had at least $ 10,000 in savings and $ 5,000 in annual social security benefits when retired. They found that only 18% were retired with enough money to maintain their standard of living.

However, over time, most households reduced their spending and slowed how quickly they used up their savings. After 10 years, the proportion with sufficient funds for retirement rose to 48%.

The study published in September 2020 has its limits. The sample size was relatively small, did not include the poorest households, and only looked at the first 10 years of retirement. Also, the researchers couldn’t tell if people are cutting back because of need or choice. Blanchett believes many haven’t thought about it enough how much retirement costs and are forced to adjust when their savings run low.

“Either they didn’t know how much they had to saveor they just didn’t (saved) it, ”says Blanchett. “You are retiring and you have to start making more difficult decisions.”

Some who could spend more don’t

However, the researchers also found that many of the households that had enough money were spending as if they weren’t. In fact, 29% of the best-funded households had more wealth 10 years after they retired.

This goes down well with financial planners, who say they often have clients who are spending less – sometimes much less – than their wealth would support. Some want to bequeath inheritances for their children or protect themselves from financial shocks like long-term care. In other cases, they just feel more comfortable keeping old habits.

Third Incentive and SSI: What This Means for Social Security Recipients

“When you are in the habit of being frugal, you usually stick to that,” says Dana Anspach, a certified financial planner of Scottsdale, Arizona.

However, people can go too far when fear prevents them from getting the most out of their retirement, Blanchett says.

“You might not end up spending enough money if you could enjoy it more,” he says.

A little planning can go a long way

Choosing the “right” amount of retirement spending is not easy because of all the unknowns, including length of your life and future health. When you have a clear idea of ​​what your retirement spending will be and how much income you can expect, then you can come up with a sustainable spending plan. A good financial planner – preferably an escrow advisor who is committed to putting your interests first – could be helpful. Your broker or 401 (k) provider may also have resources to help guide you.

A little planning could go a long way in helping the many people who cannot sustain their lifestyle before retirement. Blanchett compares it to being able to spot the edge of a cliff in time to avoid being run over.

“It can be a very painful reality for a lot of people when they really understand what they have and what they need,” says Blanchett. “But I’d rather you understand this at 65 than you get to the point where you’ve used up all of your savings.”

This article was written by NerdWallet and originally published by the Associated Press.

More from NerdWallet

Liz Weston writes for NerdWallet. Email: lweston@nerdwallet.com. Twitter: @lizweston.

The article Will you really run out of money in retirement? originally appeared on NerdWallet.

Close modally

Suggest a correction