Numbers That Matter Most On Retirement

People who are expecting retirement any time soon need to prepare in order for them to enjoy this stage of their lives. For those who are about to get to this stage, there are certain numbers that may prove to be important especially in retirement planning. Here are some of them.

Number Of Years Left Before Retirement

This provides the mean to know on whether people are ready or prepared for retirement. It is good practice for people to determine a certain date on which they plan to retire and base their retirement preparation based on that number. It will help people gauge their readiness for retirement as well as to determine if they are doing enough.

Current Cost of Living

This number will provide the basis for all things that will follow on retirement planning. A simple way of determining your current cost of living is by getting your current gross income and then subtracting every amount that you save for retirement from that number. What is left is more or less your current cost of living, including the taxes.

Amount of Noninvestment Income

This is the amount that you are to receive when you retire that does not come from your investments. This includes your Social Security, pension as well as any rental income you will be receiving.

Amount You Plan to Receive From Portfolio

If you have placed your retirement savings into an investment portfolio, you also need to determine the amount that you plan to get from that fund to use as spending money for retirement. If you have a well-diversified portfolio of investments that also earn a substantial income for you, getting around 4 percent annually from it for your retirement may be ideal and won’t increase your risk of running out of money later on.

Annual Amount You Save for Retirement

You need to know how much you are saving each year that goes to your retirement fund. This will help you determine if you will be able to accumulate the desired amount of funds that will help you prepare for retirement. It can help you calculate on whether you are doing enough or you are doing less in trying to save up and reaching your retirement fund goals.

There are other numbers that you somehow need to know that will affect your retirement planning. But the numbers highlighted above may be considered some of the more essential ones that will help you determine whether you are planning well for retirement or if more needs to be done. It will help you do your retirement preparations even more efficiently and with those that are based on solid numbers.

 

Posted by Ardent Editor on Dec 11 2012 in Financial Planning Tags: , , , , , , ,

  • Sponsors