How To Use A Personal Capital Retirement Calculator?
Unsurprisingly, finances are a top priority for people approaching retirement age. Knowing how much you need to retire comfortably and confidently is extremely important. Yet, it can be challenging, as inflation and the increase in the cost of living will quickly erode your ability to retire. So, how can you address your concerns effectively and efficiently?
Estimate Your Expenses: Consider how your spending might change in retirement. Some costs, like commuting, may decrease, but healthcare can rise significantly. A rule of thumb is to plan for 70-90% of your pre-retirement income. Other considerations are that you may have significant personal expenses paid, such as your vehicles and home. However, these expenses cost you money to keep them in good condition. So be sure to calculate, based on what age you plan on retiring, how many times you may need to replace/ repair these more significant personal expenses.
Factor Income Sources: In most cases, this is where retirees, or those planning for retirement, go wrong. You have been putting money away, investing, and saving. If you follow any amount of news, then you know that Social Security in America today is not at all what was projected for many retirees when it was first implemented. The system is failing, and the responsibility has shifted from the government and enormous company responsibilities to the individual. This highlights a big problem many retirees do not understand or even consider when investing early in their careers.