Though every person would like lead a comfortable Post-Retirement life, it would be difficult to save money for future without proper planning. For most of the Middle Class office going professionals, the one of the dream would be to save money for post- retirement. Those who wish to have the money saved, proper retirement planning should be in place right from the word go. This attitude opens up a tough question “How Much Money Should I Save Which Helps Me in Leading Post-Retirement Life?” In process of searching proper answer you will end up with good retirement plan.
Now the other tough question arises “How to determine the Income which will be sufficient for Post-Retirement?”
It’s simple; use your 80% of your pre-retirement income as your projected retirement income. For this the planning plays an important role. Consider all the facts which cope up in reducing the post-retirement living expenses such as commuting expenses, taxes etc. Usually today’s retirees tend to live more comfortable with all the lavishness which they were enjoying pre-retirement and due to this earning extra income in post-retirement also should be a part of your retirement plan. Extra income may be though any source which you end up in earning depending on personal preferences. Considering all the plans including inflation you may conclude to say how much money would suffice your living needs.
Another popular resolution is safe withdrawal rate, generally held to be 4%. Based on long good Investment returns, it’s widely measured that the retiree can withdraw 4% of his or her group each year for the entire duration of retirement without breaking. Investment returns will ensure the retirement account from going down to zero.