Retirement is an important milestone in life, and it's essential to plan ahead to ensure that you have enough money to live comfortably. According to AARP, a good retirement income should represent approximately 80 percent of your pre-retirement income. This is because when you no longer work, you won't pay income taxes or other work-related expenses. To achieve this goal, it's important to save money in tax-advantaged accounts such as a 401(k), 403(b), 457 or a TSP.
It's also wise to consult a financial advisor who can help you create a savings and investment plan tailored to your particular situation. Unfortunately, the National Retirement Security Institute reports that nearly 40 million households have no retirement savings. To determine if you're on track for the retirement you want, consider your current financial situation and use a retirement calculator. This will help you estimate how much you need to contribute to an annuity in order to retire comfortably. It's also important to consider how your retirement income needs may change over time and what circumstances could affect your financial plan. When planning your retirement income strategy, it's essential to consider all sources of retirement income such as Social Security, retirement accounts, and pensions.
Additionally, think about your personal financial goals, future travel plans, and other expenses. Saving for retirement may seem daunting, but it's possible to achieve a comfortable retirement income with the right plan.
