How much income will you receive from your pension and/or Social Security benefits?Once you've figured out how much money to retire, then you'll need to take a realistic look at how much money you'll actually have coming in every month. Check with your human resources department at work to get the numbers you'll need to estimate to what extent any available pension will fund your retirement. For Social Security payout information, visit the SSA's website.
Will retirement savings be enough?
After you've crunched the numbers with a retirement income calculator, what are you left with? In other words, considering any pension and Social Security benefits, will you have enough income to live on? If not, then where are you planning on drawing this additional income from?
Using some of your savings can be a good way to supplement your income, but will it last as long as you need it to? If there's a short-fall, are working part-time, spending less or both realistic options for you?
The key is to determine whether or not you'll have enough money to retire. Unfortunately, the numbers don't lie. If you don't have enough money, and your desire to leave the rat race is beckoning, you may have to make some sacrifices that include things such as downsizing lifestyle or working longer in order to build up your savings. If you have debt, then try your best to eradicate it as quickly as possible by:
- Adding up how much you owe (credit card, personal loans and mortgage).
- Checking the interest rate you're paying on each debt.
- Paying off the balances with the highest interest rate first.
Of course, it's always a good idea to consider getting help from a qualified financial advisor with something as important as retirement planning. For more information on how to start saving for retirement, exploring retirement calculators or even understanding the average retirement age in the USA, visit the Protective Learning Center.