Everyone needs money to retire. The questions one needs to ask is how much money does one need and how does one acquire enough to retire comfortably. The amount of money one has during retirement can have a great influence on how one spends his or her retirement years. It could mean the difference in having to negotiate retirement work and the recreational activities one has always wanted to do. However, one has to learn how to plan and maximize the money situation long before retirement.
Calculating Living Comfortably for Retirement
The first step in planning how much one needs to save is to make a rough calculation. In calculating money for your retirement, one has to consider the following factors: current age and income, the desired retirement age and income, life expectancy, the expected pension and expected social security. For instance, a 30 year old with a current salary of $35,000 annually who wants to retire at 65 may need to save at least half a million dollars to live comfortably to age 90.
The exact figure one needs can be calculated using the above-mentioned factors. However, the figures will change if the retiree has other sources of incomes from savings, investments and other sources. One can use a calculator from trusted sources that deal with such retirement issues to get a good idea of how much money they need. Otherwise, one may have to consult with a financial planning expert.
Maximizing the Amount of Money to Retire
There are many ways to earn money for your retirement both before and during the retirement years. For instance, one can look into special savings plans such as a 401(k) in order to get tax-deferred savings and a matching contribution from an employer. However, some employers may not offer a 401(k). In this case, one can learn how much he or she needs to set aside each year in savings. A 30 year old may need to set aside about $1500 a year to have at least $50,000 in savings for retirement.
One should also look into many discount programs and associations such as AARP in order to save money for your retirement. Most of these savings will apply to people 55 and older regardless of retirement status, so saving while still working can be beneficial. One can also find a post retirement job or work on his or her own business venture to earn extra money to retire.
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