Retirement Planning Tip #2

How big should your nest egg be as you enter retirement?

Have you ever considered how big a nest egg you’ll need to retire comfortably?

What happens to the size of that nest egg if your retirement lasts 20, 30 or even 40 years?

The range of answers to the question “how much is enough?” depends on who you ask.

How much do I need to save for retirement | sitting on a beach at sunset

Some financial experts suggest you’ll need to save 8 times your pre-retirement pay in order to maintain your current lifestyle during retirement, while those at the high end recommend 20 times your annual salary.

Estimating your retirement expenses can give you a ballpark for the savings you’ll need.

Your estimate is actually more like a guesstimate. You need to make assumptions about how long you will live, what the inflation rate will be and how your investments will perform.

It sounds complicated, doesn’t it?

To help you crunch the numbers, take advantage of this useful retirement check-up calculator.

Before you visit the calculator, have this information handy:

  • You and your spouse’s age, if applicable
  • Your annual household income
  • Your monthly expenses
  • Monthly retirement savings
  • The amount you’ve already saved for retirement

Ready?

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