Retirement is a time of life that many people look forward to, but it can also be a time of financial uncertainty. How much money do you need to retire comfortably? The answer depends on a variety of factors, including your lifestyle and the state you live in. Generally, experts agree that you'll need between 70 and 80% of your pre-retirement income to maintain your standard of living. A good rule of thumb is that you'll need 70% of your annual pre-retirement salary to live comfortably.
However, if you plan to travel, build your dream home, or pursue other activities, you may need more. The state you live in can also affect how much money you need for retirement. For example, those who retire in Idaho can expect to spend less than the national average due to lower retirement costs. On the other hand, Hawaii is the most expensive state to retire in.
Despite higher costs, savings and Social Security appear to be sufficient for a large portion of the state's retired population aged 65 and over. When planning for retirement, it's important to consider your retirement income plan and assign it to a budget based on what you expect to spend or what you can afford to spend in each category. Knowing when and if you'll need to make adjustments to your spending habits can help you have the confidence to live the retirement lifestyle you've been planning for many years. It's also a good idea to consult a financial advisor who can adapt a retirement savings goal to your particular situation and help you get on the right path with a savings and investment plan.