Numerous statistics show that a majority of Americans do not know what they need to have saved to maintain their lifestyle in their retirement years.
Anyone considering retirement should have a sense of what they spend now and what they will spend in retirement.? With more free time, it is easier to have increased expenses.? Plus, inflation will likely increase expenses with each year lived in retirement.? In other words, what you have saved today will likely not go as far tomorrow.
We see health care costs skyrocketing.? This is a trend that does not seem to have an end.? On top of that, longevity is improving.? (To estimate how long you may live, there are Life Expectancy calculators available online.) ?As we live longer, we have more years to spend. Plus, we might have more needs, and costs in those later years will likely further increase.
Debt and other liabilities also factor into the equation.? Therefore, an encompassing look is needed to properly make informed decisions.
It helps to work with a professional financial planner to evaluate these factors and others that go into creating a dependable budget.? If you do, it will make it feasible to make better decisions.