How Much Money Do You Need to Retire
I want you think about it a different way. Think about your retirement in terms of income. How much income do you need on a monthly or annual basis to cover your living expenses and all of the things you are doing to enjoy your retirement? How much income do you need to accomplish all of your retirement goals and to live a carefree retirement?
In the past one’s retirement was about 1/3 from social security, 1/3 from and employer’s pension, and 1/3 in personal savings. The social security and pension covered most monthly expenses, and the savings were for emergencies. Fewer and fewer companies are offering pensions. It is more probable that you have a 401K at work or have put money into an IRA. So that today more and more retirements are based on 1/3 social security and 2/3 from savings.
When we get to 2/3 of your retirement coming from savings, we are back to asking, ”What is your number?” Your retirement is at risk if something happens to reduce your savings.
The solution is to take part of your savings and set up your own private pension. This can be done so that you have a guaranteed monthly income for the rest of your life. So if you or your spouse live longer than you expect, you still have that money coming in every month. It does not matter what happens to the stock market. You have your income every month so you can accomplish your goals and live a carefree retirement. Remember in retirement income is king.
For more information about a private pension, click below.