
Retirement Planning
How Your Spending Changes in Retirement
Household spending generally drops at retirement and then continues to decline throughout retirement. Here’s how people’s spending changes the most and how it can effect your saving plan.
Planning for retirement is a multi-faceted process, provoking questions like “how much can I afford to spend each year?” and “when should I start saving?” With so many factors to consider, we’ve provided a quick run-down of some key retirement topics you should be thinking about.
There’s no definitive answer to this one. Your longevity depends on a number of variables, including family history, health and lifestyle. Our sister company, Abaris’, longevity calculator, which was developed by professors at the Wharton School of Business at the University of Pennsylvania, offers an estimate, but of course, no one can predict the future.
There is, however, one fact that applies to us all: the average human lifespan is growing, and with it the span of one’s retirement is too. This means you’ll spend more in retirement and that those preparing for retirement today need a better strategy than those of previous generations.
In order to effectively prepare, it’s important to first consider how much money you’ll need each year during your retirement. There are several approaches out there to determine this amount, but at the end of the day, the dollar figure you think you can get by on in retirement is a personal choice. To help you predict what this amount may be we’ve outlined a few tips below:
With the decline in employer pension plans, Social Security is increasingly important for retirees. It’s a simple enough system: you work at least 10 years, paying into Social Security to qualify for benefits in retirement. Your benefit level is determined using the average of your highest 35 years of earnings and a formula.
There is one big decision for you: when will you begin taking your benefits? There are three key ages: 62, full retirement age, and 70 years old. Here’s the deal with these three ages:
Like we said, retirement planning is tricky, lacking black and white answers. By starting with these three questions you can begin to plan for a comfortable and long retirement.
Household spending generally drops at retirement and then continues to decline throughout retirement. Here’s how people’s spending changes the most and how it can effect your saving plan.
It’s just as important to have a plan for spending money as it is for saving it. Here’s what you need to know.
Unsure of the best way to save for retirement during your working years? There’s no right answer, but having a strategy and knowing of the available saving vehicles doesn’t hurt.