To pinpoint the average retirement income you would need to live comfortably throughout the U.S., GOBankingRates looked at five factors in all 50 states and the District of Columbia: an individual’s spending on groceries, healthcare, housing, utilities and transportation. Your age at retirement also plays a factor. In some places, you can get by on a small nest egg, while in others, even $2 million won’t be enough. That’s because the cost of living varies from state to state. But the exact dollar amount you need will depend on a variety of factors - especially where you plan to live in retirement. There are several rules of thumb to help you figure out how much to save to retire. Unfortunately, there’s not a one-size-fits-all answer. Be well-prepared and follow the steps of estimating your retirement expenses to ensure that you can spend your money in line with your lifestyle during retirement.How much do you need to retire comfortably? It’s a question in the mind of every American saving for retirement. To prevent carelessness, you should estimate your expenses higher than usual because you never know how high the cost of living will be in the future. In case there’s any problem, you can adjust your spending behavior right away. It’s better to record income and expenses as their important information. Prepare Personal Financial Statement (Assets – Debt = Net Wealth) to know and understand your financial status which is the beginning of financial management for retirement.Ģ.Prepare Income and Expense Statement (Income – Expenses = Excess money or Lack of money) to monitor your financial behavior. The next step is to manage financial activities by the following methods.ġ. Recreation: Leisure, Travel, Party, Donation, Making merit Health: Medical fee, Supplement products, Life insurance premium, Health checkupĥ. Travel: Public transportation, Gas, Toll fee, Car maintenanceĤ. Housing: Water, Electricity, Phone, Internet, Repairģ. Whatever retirement lifestyle you are, there’re 5 major expenses to be concerned about.Ģ. Average monthly retirement expenses at the lowest luxurious level include Industry workers at about 14,005 baht. The finding is average monthly retirement expenses at the lowest sufficient and pleasurable level consist of agriculturists and labor workers at 8,153 and 9,193 baht, respectively. Referring to research in 2016 “Money spent after retirement: How to save enough money”, conducted by the Department of Banking and Finance, Faculty of Commerce and Accountancy, Chulalongkorn University, the survey was taken with Thai people from several professions nationwide. You can study the lifestyle of those who have the same profession as the expenses don’t vary much. You do that by comparing monthly expenses at the moment and then adjust them to your lifestyle during retirement whether you want to live your life sufficiently, pleasurable, or luxuriously. That means you need to save more money for special occasions during retirement such as travel, shopping, etc.Įstimating retirement expenses depends on your lifestyle. Or, you’ll try to keep expenses after retirement not less than 70% of expenses before retirement.Īt this stage, you save money for retirement more than a pleasurable level. The quality of your life after retirement is the same as your working age as expenses before and after retirement are not much different. You’ll have enough money to spend per month on general expenses such as housing, food, utility bills, medical fee, etc.
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