Some retirement planning calculators say you can survive on 70 to 80 percent of your pre-retirement income. It would actually be an unnecessary risk to try and aim for a simple percentage. Retirement planning is a challenging venture and for it to be successful, basing your plan on an exact percentage is unreliable because of the many variables.
After you retire, many work-related expenses (commuting costs, special clothing, etc.) are no longer necessary, your children should be financially independent and your mortgage should be paid off. But while those financial costs are gone, you will find there are new ones to replace them. Health care alone can use up a large amount of retirement funds.
The primary factor to achieve retirement success is the money that you're able to save. A diligent savings plan should be an important part of your retirement financial planning. This will allow you to be better prepared for the future and able to maintain the lifestyle you would like to have.
The best retirement planning rule of thumb is to seek financial advice based not on some simple percentage, but on your specific investment capabilities. When planning for retirement, all aspects of your income — Social Security, pensions, taxable portfolio income and retirement account distributions — have to be analyzed by those skilled and experienced in personal financial management. Finding a financial advisor to assist with retirement planning is prudent because it’s just too risky to do alone.
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