Wondering How Much Money You Need After Retirement? Find Out!
Everyone thinks about retirement, but few of us ever sit down to think about how much money we will need to live the type of retirement life we want. Our parents and grandparents did not have this ability because they didn’t have a way of calculating how much retirement money they would need.
Fortunately, with pension calculators and online resources, it is now possible for anyone to quickly and easily estimate their monthly or annual income in retirement by using just a few key inputs. You can use these numbers to help you begin thinking about your personal savings goals, decide if you have an adequate income stream for retirement, and even plan for your grandchildren’s education.
If you’re planning on retiring soon or just beginning to plan your retirement, start reading more about the importance of having a solid retirement plan below.
What is retirement planning?
Retirement planning is all about preparing for your future to continue meeting all of your goals—and truly enjoying your life—even when you’re no longer working. It’s a way to protect the things you’ve worked hard to achieve and make sure you can keep doing all the things you love.
And every plan is unique because every person has unique ideas about what they want their retired life to look like. You might want to take a trip around the world; your partner might want to spend more time with family, and maybe both of you are ready for some quality time on the golf course.
Importance of Retirement Plans
1. You Can’t Work Forever
It doesn’t matter what your career is or how awesome you are at it—there will come a time when you’re just not able to perform the tasks required of your profession at the level you need to anymore. And that’s okay! We encourage it.
As we grow older, our priorities change, and what used to be important no longer matters as much. When you’re in your twenties, you think nothing of coming home at 2 am after a night out with friends and your favorite playlist blaring on full volume. But when you’re in your thirties and have a young child at home who needs quiet to sleep? You’ll do anything to avoid waking them up!
It’s good to have goals and aspirations for yourself, but those plans should always allow for the possibility that you might not want to do this anymore one day. That’s what retirement plans are for: when you’ve had enough of whatever hard work you’ve been spending your life doing, you don’t have to keep doing it until the day you drop.
2. Fulfill Your Bucket List
Remember when you were in school, and you’d list all the cool things you wanted to do but never got around to doing? There was the big trip to Europe, the surfing lessons in Hawaii, and the hiking trail you always saw in photos that went through a field of flowers. And then there were all those bucket-list activities:
- Racing cars in Monaco
- Riding a horse on the beach
- Attending opening night at the opera
Well… it’s time to dust off that old bucket list and start checking things off. The best part of retirement is being able to go to those places you have dreamed about and experience them. You can experience and engage in the events you couldn’t do during your career.
Retirement planning allows you to stay in the moment when you have a comfortable retirement income. You can be carefree with your time—no more worries about having to get back to work.
3. Tackling Future Financial Obstacles
We all like to think we’re invincible, but the truth is that none of us is immune to financial struggles at any point in our lives. A lot of us have an “it won’t happen to me” attitude, but the fact is that it can happen to anyone. When we are young, retirement seems like a lifetime away, and we don’t tend to put much thought into it – after all, we have so many other expenses, right?
But this thinking can be detrimental when you reach retirement age, with your savings not covering your living expenses as they should. The best way to stay out of trouble with your finances is to have a viable plan to help you stay on track. It is important to plan for future financial hardships.
People are often optimistic about their financial future, thinking that things will be better in the years to come. Your future is not guaranteed, which is why retirement plans are necessary. Once you have put a plan in place, it is best to stick with it.
How Can A Pension Calculator Help?
We’ve all seen our parents or grandparents struggle to make ends meet after their retirement. This should not be the case for you. The good news is that with proper planning and saving early. You won’t have to worry about this when you retire.
A pension calculator can help you save enough money to retire at your desired retirement age and live comfortably thereafter. It will calculate how much your pension fund will be worth when you retire and how much monthly income it will earn. The calculator considers inflation and provides a projection based on the average life expectancy of someone in your age group.
If you fancy seeing what you could be retiring with, there are a few pointers to help you on your way. Firstly, do whatever you can to secure yourself a retirement plan. It will make a real difference to your final plans and future happiness, so do not hesitate to put in a little extra work for your future. Avail of any automatic contributions that your employer offers to supplement this.
Featured Image by 3D Animation Production Company from Pixabay