How Much Money Do I Need For Retirement? – 4 Retirement Factors to Consider

If you’re considering retiring in the near future, you’ve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. It may not be true for you. Consider the following 4 factors.


Your Health

Most of us will face a major health problem at some point in our lives. Think, for a moment, about the costs of prescription medicines, and recurring treatment for chronic ailments. These costs can really take a bite out of retirement income, even with a great health care plan.


Your Heredity

If you come from a family where people frequently live into their 80s and 90s, you may live as long or longer. Imagine retiring at 55 and living to 95 or 100. You would need 40-45 years of steady retirement income.


Your Portfolio

Many people retire with investment portfolios they haven’t reviewed in years, with asset allocations that may no longer be appropriate. New retirees sometimes carry too much risk in their portfolios, with the result being that the retirement income from their investments fluctuates wildly with the vagaries of the market. Other retirees are super-conservative investors: their portfolios are so risk-averse that they can’t earn enough to keep up with even moderate inflation, and over time, they find they have less and less purchasing power.


Your Spending Habits

Do you only spend 70% of your salary? Probably not. If you’re like many Americans, you probably spend 90% or 95% of it. Will your spending habits change drastically once you retire? Again, probably not.

Will You Have Enough?

When it comes to retirement income, a casual assumption may prove to be woefully inaccurate. However it doesn’t hurt to get a rough estimate. Using an online calculator link the one listed here can help you get started. You can use CNNMoney’s Will You Have Enough to Retire? calculator:

You won’t learn exactly how much retirement income you’ll need simply by watching this video and using the online calculator. But you will be on the right path. You may want to consider meeting with a fee-only, CERTIFIED FINANCIAL PLANNER™ who can help estimate your lifestyle needs and short-term and long-term expenses.

1. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information should not be construed as investment, tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

Weiss Financial Group is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before implementing any strategy or recommendation discussed herein. Insurance products and services are offered through individually licensed and appointed agents in all applicable jurisdictions. The advisers at Weiss Financial Group are not attorneys of a law firm but can provide guidance to the client’s other professionals.

Leave me a comment to ask any question or contact me through my website if you’d like to see if I can help you.

5 Replies to “How Much Money Do I Need For Retirement? – 4 Retirement Factors to Consider”

  1. Thanks for the video! Very informative as always ?

    Though I do have an off topic question. Sorry if you already answered this in an older video.

    So I’m 23 and am looking into saving money – more so, putting money away that I won’t be allowed to touch for a while. I don’t have a serious job at the moment, currently doing freelance work, so no 401k for me.

    & Like most my age, what little money I get, I’m tempted to spend. Saving is so difficult, honestly. But I really want to do something now, so that I’ll at least be partially setup when I get older.

    Are there any other options out there for me, aside from 401k’s?


    1. Great question Amy! … and great job thinking about saving at such a young age! So, as long as you have earned income you may be able contribute to a Roth IRA or a Traditional IRA. Keep in mind those account types are intended for long-term, retirement savings (much like a 401k). My basic advice is to always try and set aside 10% of what you make throughout your life and live off the rest. First, make sure you have an emergency of at least 3-6 month’s living expenses (in something safe, like a savings account). Once you’ve got that covered move on to potentially contributing to a Roth IRA or a Traditional IRA and investing that money for long-term growth. Hope that helps! Good luck with your savings and thanks for watching!

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