3 Tips to Help You Retire on Your Terms

KALAMAZOO, Mich. - June 9, 2015 - PRLog -- What Does Security Mean to Me?
A Look at Retirement Income
“I’ve worked since I was 17 years old. I think I’ve saved plenty for retirement – but now I’m wondering: Will it be enough? To me, that spells security.”

One Step at a Time
It’s impossible to predict how long your retirement will last or how much you will spend. But there are some steps you can take to help ensure you can retire on your terms.

Step 1 – Estimate how long your retirement might last. For a 65-year-old couple, there is a 50% chance that one spouse will reach age 90.* If that couple were to retire today, this would translate into 25 or more years of retirement income.

Step 2 – Factor in inflation. Those of us who remember the double-digit inflation rates of the 1970s may view today’s economy as calm by comparison. But did you know that even at a 3% inflation rate, your expenses will double in 25 years? Your retirement income will need to keep pace with rising prices.

Step 3 – Think about health care costs. Many people assume that Medicare will simply pick up the tab once they’ve retired, but it doesn't cover everything. While the amount varies by individual, initially budgeting $4,000 to $6,000 per year per person for traditional medical expenses in retirement may be a good starting point.

What’s your retirement income story? Your financial advisor can look at your entire financial picture and help create a retirement income strategy that’s right for you.

*Milevsky, IFID; Society of Actuaries RP-2000 Table.