At Edward Jones, we believe there's no "magic number" that applies to everyone. You're an individual – not a math equation. Do you plan to work part time, volunteer, travel, spend more time with the grandkids or simply take it easy? It's probably a combination of these – but how much money you need to retire depends on what you want to do.
No matter what your plans are, it's a good idea to discuss your retirement plans with your financial advisor. Then, together you can determine a realistic goal and figure out "your number." That way, you'll have a better idea of what strategies make sense to help achieve it.
So it all starts with you. How do you begin?
After you think about what retirement looks like for you, outline your expenses to develop a reasonable estimate of your future spending.
Consider separating expenses into:
And don’t forget major expenses like taxes and health care.
Next, think about where your income will come from, including:
You can also use our Retirement Savings Calculator to help you get started.
When you plan to retire can also affect how much income you'll receive from outside sources, such as Social Security. So talk about your options with your financial advisor. We can help you sort through some of the complexities, including the effects on payment levels, spousal benefits and taxes.
"Will I have enough?" is a big question. It deserves a conversation with someone who can help you see the whole picture.