Do You Have Enough Money for Retirement?

When you spend your adult years saving for retirement and you finally reach the age of 65, you may be champing at the bit to leave your job behind and start your life anew.  The problem for many people, especially in today’s economy, is knowing whether or not they are financially prepared for retirement. 

With today’s extended lifespan and medical advances, it is important to realize that you likely have between twenty and forty years of life left when you retire, so you need to be certain that you have enough money left to cover your expenses for the duration of your retirement.

Ideally, your retirement fund, pension, and other payments upon retirement should equal at least two thirds of the income you received while working.  This will help cover your cost of living as well as any new medical or care expenses and the cost of travel as well.  Life in retirement can become quite costly, particularly if you have failing health, and you need to be certain that you can afford it. 

For many people this means waiting to retire until expenses such as car loans and mortgages are paid off.  The last thing you want is to retire and start taking less money, only to find that you can no longer afford to maintain your home.

When you are calculating for retirement, you need to be certain that you will be able to receive payments large enough to cover your monthly expenses and leave extra for the remainder of your life.  Consider unplanned expenses, such as visits with family, gifts for children and grandchildren, and the like. 

When you plan for every aspect of retirement, you can ensure that you have the money that you need in order to live out the remainder of your years in peace, comfort, and financial security.