An individual should also take into account that the cost of living will likely rise over the years; the average annual inflation rate for the last hundred years is about 3.37%. Following are some things that a person should take into considering when pondering the question of “how much is really enough for you to retire?”
How much is enough to Retire On in the United States?
A person who is wondering how much is enough to save to retire should start by making note of how much money is spent in a single year. Overall, it is estimated that an individual will spend an average of $6,624 a year on food and drink. A retiree will also spend an average of $5,000 a year on medical treatment. The cost of housing depends on where one lives. A senior citizen who owns his or her home will not have to worry about this expense.
On the other hand, a person who lives in a retirement home will need to pay a monthly rental fee for the room, although his or her meals and utility bills would also be covered by this bill. Entertainment fees should also be taken into consideration. A senior citizen who has retired will want to relax and take part in activities and events that he or she finds enjoyable.
How much is enough to Retire on Abroad?
A retiree can bring down the costs of living by moving abroad. Many retirees save thousands of dollars every year by retiring in Mexico, Panama, Costa Rica, Thailand or Ecuador. These countries all provide a high standard of living, good quality medical care, a beautiful climate and many forms of entertainment.
However, person will have to show a certain amount of money in the bank in order to obtain a retirement visa in any one of these countries. The answer to the question “How much is really enough to retire on abroad” is that it depends on the country one retires to.
To retire in Thailand, for instance, one has to show at least $26,500 in the bank; this money cannot be touched for a three month period. A person who wants to retire should plan carefully. It is important to keep investments secure and ensure that there will be sufficient funds to retire on. The answer to the question “how much is enough to retire on” is that it depends on where a retiree wants to live and what he or she wants to do during retirement.
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