How Much Money Do I Need to Retire?

If you want to find out how much money you’ll need for retirement, you can use some of the online calculators. However, retirement is not always a simple process. It requires careful planning. Your savings have to be good enough to support you for quite a long time. In a 65-year-old woman, life expectancy is nearly 19 years; for men, it is nearly 17 years. That means that you will need to have enough money to support you for nearly two decades.

When you turn 65, you will be eligible for Medicare; however, this program will not cover you entirely. There will be some additional expenses you will have to cover on your own. According to recent researches, a 65-year-old couple will need nearly 450,000 USD, to have fifty percent chance of covering health care expenses that are not covered by Medicare. People with employer benefits can expect fifty percent chances of having expenses that reach 268,000 USD.

Calculate Your Personal Retirement Number

How to calculate your PRN (personal retirement number): Use an online  calculator  to get this number, and you will see how much money you’ll need to create the income you want to have in your retirement.

Now, many people believe that their needs will be significantly reduced in retirement, but this may vary, and it usually depends on a particular case. The best way to ensure a good, comfortable retirement will be to maximize your savings.

To improve your savings, you can start paying off your debts. If you pay these off before retirement, this will be a great advantage. You will have more money to save before retirement, and your expenses will be much lower after retirement. There are other ways to save more money. Talk to a professional about this and see what else you can do.

Some Americans choose to  retire to a foreign country, hoping to improve the quality of life. Most people will choose countries with good climate, good health care system and low cost of living. Sounds like a “dream country”, but such places do exist. Costa Rica is just one of the popular destinations for retirees. Find out more about  the best places to retire.

Most people believe that they will have less stress after retirement, but this will only be possible if you have enough money. Start saving today! If you save diligently, you will be able to have the same living standard in retirement. Many retirees say that their standard of living has become lower after retiring. This usually happens because people don’t look forward enough, when it comes to health issues that may occur in future. Start saving in time and you will prevent such outcome.

Most retirees will tell you that you need at least 50,000 USD annually to live comfortably. However, more than a third doesn’t have this income level.