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How much money do I need for retirement?
There are a variety of concerns you need to consider when thinking about how much you
need to accumulate for your retirement.
First and foremost you need to consider what your monthly expenses will be.
You can reduce that amount by whatever you expect to receive in monthly benefits from
a pension or Social Security or any other lifetime monthly benefit. You must then consider
what your life expectancy is and how long you expect to need your monthly benefit. You
must also factor in the effect that inflation will have on your dollar's purchasing power.
At just 3% annual inflation, an item that costs $10 when you retire will cost $14.25
twelve years later and $20.32 twelve years after that. So you need to make sure that
your accumulation will grow enough to keep up with inflation or run the risk of running
short of money at some point.
Delaying retirement and working longer can dramatically reduce how much you need to accumulate
to be able to retire without money worries. To get a realistic idea of how much you will
need to accumulate for retirement, call us to receive a personalized retirement income
planner.