Savings Needed For Retirement Rule Of Thumb

An article recently appeared in  the  Columbus Dispatch  and  the Ft. Lauderdale Sun Sentinel. The original article  was  written by Donna Gehrkee-White. The primary point of  the article  was  to  give savers a rule of  thumb to  help  determine how much money they need to  have saved prior to  retirement.  Whats nice  about  the approach is it doesnt assume  that everyone has  the  same  number. Of course everyones stlye of living and  retiring is differen, therefore their personal savinggs need is also going to  be  different. The  suggested  rule of  thumb is this.  You  should have 8 Years worth of income saved in order to plan on a comfortable retirement. In other  words if your last years income was 40,000  then 8 x 40,000  = $320,000 and if  your inccome was $150,000 then  you  should  have $1,200,000 in savings.  This  serves as a starting point. If a retiree has a large pension lifetime income stream  they may be able to  reduce the saving $ needed to  secure a safe  retirement. If  they dont they may  want  to  increase the amount they  save  before they retire. 

You  can  also work a  few extra  years to  increase  saving and  decrease  the  amount of  savings needed. Remember  this also increases their  Social Security income for life. We have  available a Social Security Calculator that  lets a client determine the optimum age to begin their Social Security Income benefit and if they are married helps to strategize how and when to begin taking SS income. This is just one of the services we offer to our retirement clients.  We also  help to increase their retirement income WITHOUT MARKET RISK.

Polaris Financial Services
614-264-3864