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Living on a Retirement Income Overview
Home » Retirement » Living on a Retirement Income » Living on a Retirement Income OverviewOnce you have successfully planned your financial portfolio for your retirement, it is wise to think about how to manage that portfolio. Health, age, hobbies, travel and debt are just some of the considerations that will need to be part of the retirement budget. Most of us very rarely have enough money to do everything we want to do, but it is nice when we retire to have enough money to at least do most things and make our money last. We are living longer lives so planning and budgeting is crucial. Research has shown that only 18% of all workers feel their retirement nest egg will last over 10 years. Men are living to the average age of 65 and women 82. Even more astounding, is the fact that more and more Americans are living to be 100. Most agree that retirees will need at least 70 to 80 percent of their pre-retirement income. AARP offers retirement calculators to estimate this amount. There are several reasons why you outlive your money such as not saving enough, investments don’t keep up with inflation, you spend too much too soon and your pensions don’t pay income for life. If you withdraw more than 5% of your assets a year, then you may run out of money. Deciding whether you can afford to retire takes contemplation and financial planning. Do the homework and determine if you have enough money set aside with Social Security benefits to retire not necessarily in luxury but at least comfort! A Retirement Calculator can assist you in determining how much you will need to retire. The worksheet asks you your age, retirement age, life expectancy, salary before retirement, inflation and desired income and other information to determine how much you need. This amount will help you plan and budget and live within your retirement means and ensure your money will last as long as you last.
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