[ad_1]
You’ve spent decades in the workforce earning a living, your schedule dictated by the demands of the job. All the while, you’ve been steadily adding to your savings so that one day you could get to this point: Retirement.
You finally have time to cross items off your bucket list — or simply catch a midweek matinee movie.
The possibilities are endless.
Life may feel more relaxed and carefree, but financial responsibilities remain front and center. In fact, now’s the time you might need to be even more diligent about budgeting your money.
Living on What You Have Saved
When you say goodbye to your 9-to-5, you also say goodbye to your regular paycheck.
You’ll rely on Social Security benefits, funds in your retirement accounts and any additional income, like pensions, to cover your expenses.
Sticking to a budget is vital so your retirement savings last. That money you’ve squirreled away in your working years has to stretch for decades. Remember, life on a fixed income means there are no bonuses, overtime or promotions to increase your cash flow .
How Much Should You Have Saved?
If you’re already retired or nearing retirement age, hopefully you’ve done the math to determine whether you’ll have enough money to keep you afloat.
One popular rule of thumb is to have 25 times your average annual expenses saved up.
But how much money you need in retirement depends on many factors, like your age, where you live and the retirement lifestyle you want to enjoy.
If you intend to retire early at 60, rent a highrise in New York City and travel every couple of months, you’ll need considerably more money than a retiree who leaves the workforce at 70, lives in a paid-off home in rural North Dakota and stays home to spend time with family.
There are also a lot of unknowns in retirement — like what medical conditions you could develop and exactly how many years you’ll need your funds to stretch.
That’s why it’s important to have robust…
[ad_2]
Source link
