Is Your Retirement Income Enough? Find out How to Make Sure It Is
Will my retirement income be enough to cover my expenses
? Will it last long enough or will I outlive my savings? These questions are plaguing many baby boomers. To find out if your income will be enough follow this simple formula.
Savings Should Equal 15 Times Your Income
Most retirement planners agree your lump sum savings should equal fifteen times your average yearly salary. When your lump sum is high enough, you can draw the interest for years without having to touch the principal income. Additionally, when you do have to start taking from the principal amount, it will be enough to sustain your for the rest of your life.
Retirement Payments Should Equal 80% or More
Another method of calculations is the 80% method. Ideally, your retirement income should be at least 80 percent of your current yearly income. This figure takes into consideration lowered cost of mortgage payments, credit card payments, and lower work expenses.
However, if you plan to travel, then you will need to increase this amount to match your traveling needs. If you plan on making a big purchase such as a recreational vehicle, then the amount needed for retirement may rise dramatically.
The 30 Year Plan
It is estimated you will live approximately 30 years after retirement. Calculating your current expenses with added cost of living raises for thirty years will help you determine how much money you will need upon retirement.
Post Retirement Income
Many people find they do not have enough money saved for retirement. Therefore, they will need a post retirement income to sustain their standard of living. However, retirees do not want to go "back" to work. Instead, they prefer a change of career and for many this means going online.
Internet business is really taking off and an increasing number of baby boomers are finding it the perfect solution to their retirement needs. Working online allows them to work from home or while traveling. In addition, they can choose their own hours and work whenever and wherever they choose. It is the perfect job for any retiree.
Internet Opportunities for Retirees
While some retirees find picking up odd jobs for a little extra cash is all they need to survive, many more are finding their life experience paying off in big ways. Retirees are starting their own businesses or opening up their own consulting sites. Either way, they are finding that after working in the "real world" for years, their experience transfers to the virtual world with ease.
Even those who need help making the transition from working class to business owner are finding the help they need online. Between mentors, coaches and businesses in a box, anyone at any skill level can start making money online today. The only requirement is a desire to succeed and a willingness to work from home. If you are a self-starter and self-motivated, then starting your own business online may give you the retirement income you have been seeking and it can give you peace of mind.
Is Your Retirement Income Enough? Find out How to Make Sure It Is
By: Caroline Engstrom
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