How Much Should You Be Saving for Retirement?
Saving for retirement should be a priority in your overall financial plan, regardless of your age. Yet few working people feel confident that their nest egg will last.
Our Teamsters Service Bureau can help you plan for retirement. We now offer free financial planning services for union members age 50 and over. You can meet one-on-one with a trusted financial planner who can help you determine how much money you will need to retire comfortably.
The answer is different for each person. One rule of thumb is that you will need 70 percent of your pre-retirement yearly salary to live comfortably. That might be enough if you have paid off your mortgage and are in excellent health when you kiss the job goodbye. But if you plan to travel or spend the winter in Florida, you may need more.
The three most common sources of retirement income have been Social Security, employee pensions, and personal savings. Social Security and pension benefits will provide only a portion of your retirement income. You will need to fund the rest with from personal savings and investments.
For most workers, it has been tough to put money aside during the economic slowdown caused by COVID-19. Nevertheless, financial planners recommend earmarking at least 20 percent of your annual earnings for retirement. The earlier you start, the better off you will be in retirement.
It is important to make realistic estimates about what kind of expenses you will have in retirement. Be honest about how you want to live in retirement and how much it will cost. Generally, it’s hard to predict before you’re age 50.
One way to begin estimating your retirement costs is to take a close look at your current expenses in various categories, and then estimate how they will change. Our financial planners will ask you to complete a survey before you meet. You will need to know at what age you plan to retire? How many years you plan to spend in retirement? How much you will need monthly in pre-tax income? How much monthly income you expect to earn from Social Security? How much monthly income you expect to earn in pension benefits? How much you currently have set aside for retirement? How much you are currently saving towards your retirement (including your employer’s match, if any)? Your answers will help calculate how much you should be saving.
A successful retirement doesn’t just happen. It takes planning. Our financial planners will help you pursue the retirement lifestyle you desire with actionable information from a source you can trust.
Finally, a disclaimer. Our financial planners do not sell financial products or services. For example, don’t expect them to tell you which stocks to buy. Instead, they provide reliable information and proven financial strategies to help you make sound retirement decisions. If you’re wondering if you can afford to retire early, they can help you make that decision.
Procrastination is the biggest reason people fall short of achieving their retirement goals. If you’re age 50 or over, consider meeting with one of our financial planners – it’s free and confidential. For a financial planning referral, please contact Char at 612-676-3700 or firstname.lastname@example.org.
Teamsters Service Bureau