Retirement Savings

Protecting your future

How Much Much Do I Need to Retire?

People planning for retirement often ask, “How much do I need to retire?” The answer varies from person to person. You need to consider your income now, your retirement age, and your retirement lifestyle.

You should also factor in rising health care costs and rising living costs. Also, medical advances are also helping people live longer. Consequently, people are planning for longer retirement periods than in the past. Different retirement professionals offer guidelines on how much you should save for retirement. However, what’s right for you? It is possible to plan a retirement planning strategy that is suitable for your specific circumstances.

Budgeting for Retirement

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To answer “how much do I need to retire?”, expenses must be considered.”. Our retirement planning process includes discussing our clients’ anticipated expenses.  It is important to know how much money you’ll need to live comfortably throughout retirement.

Using an online retirement income calculator will help you estimate your income and expenses. Retirement can be affordable if you have a sufficient retirement income. Include your day-to-day living expenses, such as food, housing, and health care. Also, be sure to factor in “extras” when calculating expenses. For example, maybe you would like to travel more, pay off your mortgage, or donate more to charity. In addition, a surplus is needed for unforeseen circumstances or an emergency.  

Inflation and Retirement

Taking steps now to save for retirement involves looking ahead. It is also necessary to account for future inflation and your life expectancy. 

Historically, the U.S. economy has an average annual inflation rate around 3% annually. That number is modest, but shouldn’t be ignored. For example, a 3% increase over 25 years would mean the cost of goods (food, transportation, healthcare, etc.) would roughly double. In this context, the purchasing power of a retiree on a fixed income at 65 would be cut in half by age 90. 

For instance, if the average annual inflation rate is 3% over the next 20 years, you will spend $181 to purchase the same things you can buy today with $100. 

Based on the purchasing power of the dollar, this means that $100 today will be worth only $55.37 in 20 years. 

At Hybrid Financial, we can guide you based on your specific situation and help you answer the question, “how much do I need to retire?”.

Protect Your Retirement Income

Most companies no longer have pension programs in today’s economy. Federal employees must contribute more to their pension plans now than they used to.  Many people find out that they will receive substantially lower payouts when they retire. In addition, markets and mutual funds carry high risks and aren’t ideal options. In case of a market crash, your earnings may also drastically decrease. The strategy we employ helps you protect assets while providing a reasonable return.** 

It is therefore essential to protect your principal in order to prevent loss and ensure a comfortable retirement. Our fixed index annuity products come with optional benefits at Hybrid Financial. We want to help you feel confident when you ask yourself, “How much do I need to retire?”.

woman holding piggy bank how much do i need to retire fort worth tx

You need to plan for the future.

Let us show you how to save for retirement with confidence. Reach out to us for a no-obligation, no-cost meeting. Join us for a complimentary educational dinner seminar. 

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