What do you want your retirement to look like? Have you asked yourself that question? You’ll have much more success if you know what you want before you start. Financially, knowing what you want your retirement dreams are in the beginning increases the chances of them coming true. If your dream is nothing more than to stay home and garden and watch your grandchildren you’ll need less money than if your retirement dream is a trip around the world with a stop in Italy to take cooking lessons. Knowing what you want has to be the beginning of a plan.
Next comes the money if you have the stay at home plan you need 65-70 percent of your annual salary multiplied by the number of years you will be retired. For example 60,000 dollars x 30 years if you retire at 55 and you plan on living till you are 85. In any case it’s a lot more than social security can provide. If on the other hand you are planning that trip and those cooking classes in Italy you need to figure in those costs and add it into your retirement costs and then do the math from above.
Did you plan to have enough to retire?