Determine your lifestyle needs to find out how much money to save for retirement and when retirement is possible, recommends Mitch Strohm for Bankrate. Consider how much savings is needed, at what age you plan to retire and what proportion of income you plan to use each year of retirement.
Most Americans have limited savings for retirement and should complete a review of their current savings and retirement needs. The date when workers can actually afford to retire is determined by how much money is needed for living expenses each year, explains Strohm. Strategies to improve financial security in retirement include making extra contributions to retirement plans, waiting longer before collecting Social Security and looking for additional income sources during retirement. Plan ahead for a more comfortable retirement closer to your lifestyle goals.
Typical workers may need an income of 85 percent of their preretirement income. Consider cutting living costs, suggests Strohm. Compound interest provides a bigger boost to investment growth if contributions are made early. Without additional savings and cost reduction, many retirees may not be prepared for a financially secure retirement. Learn more about all available options and create a retirement plan that helps you with your investing goals.