As a financial consulting firm, one of the main questions we get asked by our clients is, “How much money do I need to retire?” Although the answer to this question varies, we generally recommend having eight times your annual salary saved up before you decide to retire.
Factors to Consider
One of the main reasons why how much you need to save up for retirement varies from person to person is because there are so many factors that go into this amount. As you assess how much you will need to retire, think about what hobbies you currently have or might pick up. For example, if you are eager to travel during retirement, you will likely need to have more saved up than if you simply wanted to spend your days at home reading.
Another factor you need to account for is the time you will have during retirement. For many people who retire, how much they spend on food is drastically reduced because they have more time. Keep in mind that while you may be reliant on picking up dinner on your way home every night because you do not have enough time to cook, things might change once you have the flexibility to plan out your meals, compare prices at the grocery store, and cook at home.
We Can Help
As your financial consulting firm, we can help you assess your lifestyle and income, so you will be able to solidify an effective retirement savings plan. For more information about our financial consulting services, contact us today.