To ensure you can enjoy your retirement to the fullest, here are four questions to ask yourself. We also recommend reaching out to retirement financial services in New Jersey as you approach retirement.
Q1. What do you plan to do during retirement?
It’s hard to envision a life without working when you’re in your 20s, 30s and 40s, but it becomes easier as you begin to approach full retirement age. Think about what you want to do when you retire. This will help determine what you need to have in savings to live the life you want.
Some of the things to consider are:
- Where do you want to live?
- How often do you plan on traveling?
- How do you want to spend your time?
- Do you plan to work part-time or start a new business?
- Do you intend to continue your same lifestyle?
Q2. How long do you expect to live?
This is a hard question to answer, as no one knows how long they are going to live. But there are some indications based on your current health status, the presence of a chronic illness or health condition and your family’s longevity. The average life expectancy in the United States for a man is 75.1 and for a woman it’s 80.5.
Q3. How much retirement savings do you need?
We recommend creating a budget plan for retirement. Think about your standard of living. Do you want to maintain your current lifestyle? You can adjust up or down depending on your needs, but experts say retiree expenses average between 70% to 85% of pre-retirement income.
Keep in mind, this is a ballpark estimate. Many factors will influence your expenses, including your health care costs, future inflation and lifestyle.
Q4. How much should you be saving right now?
The easy answer: as much as you can afford to. Experts recommend saving 10% to 20% of your income throughout your working years. There are many ways to save for retirement, such as by contributing to your 401(k) or IRA, automating your savings and investing in stocks. The earlier you start saving, the better.
Plan for a Tax Free Retirement in New Jersey
These are four important questions to ask yourself regarding retirement. Whether you’re in your 20s or your 50s, it’s in your best interests to put something away every month. You can’t rely on Social Security entirely, as this only covers around 40% of your income. To discuss your financial future, contact Leonard Financial Solutions today. We help people build wealth and reach a tax-free retirement!