Seeing your current spending level, you may have estimated that you will have the same spending while you retire but spending on travel, hobbies, healthcare may rise. Even if you have not thought about this at all, there are some factors that most people overlook while estimating their retirement but these are major 5 you need to know when you are planning your retirement.
Retirement Date Calculator.
1 . What you want in your new lifestyle –
People set different goals after retirement like sailing,travelling ,hiking,camping,reading books etc.
Some of them are high costing while many of them are low budget or doesnot require money at all.
These lifestyle choices makes major impact on the spending . As the childcare costs disappear ,your discretionary spending may play a big role in the bottom line.
2 . How expensive your living location is –
Many people consider housing costs,gas,food,taxes etc affect the bottom line . As the cost of living in different areas varies nation wise dramatically,you might consider places that don’t tax distributions from retirement plans to live in if you are planning to move.
3 . Length of retirement –
As for your retirement portfolio , you need to figure out how long you want it to last. If the retirement is delayed by few years, you may reduce the number of years in which you need to draw down from IRA assets and do more than just save additional money.
4 . Health –
Older a person is ,the more he spends on the health care expenses. Also, declining in health conditions can require additional home modifications due to physical limitations which can cost lots.
5 . Age of your spouse –
While planning for retirement savings, you should not only consider and calculate your own expenses but also your spouse’s .Hence, you should take in note both your spouse’s any your age to make sure you have saved enough for your spouse too after you.
As a conclusion, retirement costs varies greatly according to a person’s lifestyle and goals so while planning for it don’t just take in note of the current expenses but also the future.
Trulia: Retirement Corpus Calculator
Note: Your visitors will be able to select the date and currency conventions they need by clicking on “$ : MM/DD/YYYY” in the calculator’s lower right corner.
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