Retirement planning is a crucial part of financial planning, and it's important to understand how much money you'll need to retire comfortably. According to experts, the average retiree will need to replace about 80% of their pre-retirement income with savings and Social Security benefits. The median and average numbers weigh differently when considering which is most relevant to retirement planning. To get a good first estimate of how much money you'll need to retire, use SmartAsset's free retirement calculator.
It's also important to consult a financial advisor who can adapt a retirement savings goal to your particular situation and who will also help you get on the right path with a savings and investment plan that can ensure you achieve your goals. The proportion of people without retirement savings increases with younger age groups, and among people aged 18 to 29, 42 percent had no retirement savings. The amount you'll have to save in order to successfully retire also depends on factors such as the expected lifestyle during retirement and whether you expect to have other sources of income during those years. On the other hand, if you plan to pay off your mortgage before you retire or reduce your housing situation, you may be able to live comfortably on less than 80%.
Most experts say that your retirement income should be approximately 80% of your final annual income before you retire. Your ability to retire comfortably depends on how much money you have saved, how much you spend, how much you work, and how old you are when you retire. If you're looking for ways to save more money, then you should start thinking about your retirement plan. To ensure that you don't withdraw excess funds from your retirement accounts, it's important to plan ahead and make sure that your retirement income is sufficient for your needs.