Retirement Income Planning: We Can Help

You may have a very idealistic vision of retirement—doing all the things that you never seem to have time to do now. But how do you pursue that vision? Social Security may be around when you retire, but the benefits may not provide enough income for your retirement years. Few employers today offer a traditional company pension plan that guarantees you a specific income at retirement. People are living longer and must find ways to fund additional years of retirement. Today, sound retirement planning is critical.

Retirement planning is easier than it used to be, thanks to the many tools and resources available.

• Determine your retirement income needs
  Many people think of retirement income as a percentage of current income; that percentage could be anywhere from 60% to 90%, or even more. To determine your specific needs, estimate your annual retirement expenses. Use your current expenses as a starting point, but note that your expenses may change dramatically by the time you retire. If you’re nearing retirement, the gap between your current expenses and your retirement expenses may be small. If retirement is many years away, the gap may be significant, and projecting your future expenses may be more difficult. Remember to take inflation into account. 
   
• Calculate the gap
  Once you have estimated your retirement income needs, take stock of your estimated future assets and income. These may come from Social Security, a retirement plan at work, a part-time job, and other sources.

• Figure out how much you’ll need to save
  By the time you retire, you’ll need a nest egg that will provide you with enough income to fill the gap left by your other income sources. But exactly how much is enough? The following questions may help you find the answer:
  • When do you plan to retire?
  • What is your life expectancy?
  • What rate of growth can you expect from your savings?
   
• Build your retirement fund
  When you know roughly how much money you’ll need, your next goal is to save that amount. First, you’ll have to map out a savings plan that works for you. The next step is to put your savings plan into action.
   
• Understand your investment options
  You need to understand the types of investments that are available, and decide which ones are right for you.

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