How Much Money to Retire?
A Guide to Retire Smarter.
So you’re wondering how much money to retire? Maybe you’re wondering how much income your retirement savings account thus far could provide to you annually?
I’ve done the research for you!
I’ve used our calculator for retirement to generating the research which is based on a guaranteed basis and not on a hypothetical basis.
You will get a better idea of how much money you need to retire, and what your income could be in the future at your target retire age.
Above all, my goal is to provide you a clear path to achieve exactly how much money you want to live on in retirement for the remainder of your life or both you and your spouse’s lives.
With this guide, you should get closer to answering the question, “When can I retire?”
You should retire happily!
Annuities
Since annuities are the only retirement plan that can provide you an income for life on a guaranteed basis, I’ve researched various annuity types to find out what you’re money can buy in the future.
Just to recap, annuities offer a lifetime income stream similar to a pension plan.
Basically you purchase an annuity contract with an income benefit, and when retirement age begins, that annuity then distributes a paycheck to you for the rest of your life as if you were still working.
Make sense?
In these scenarios, I used an income rider on a fixed index annuity for future income planning, and an immediate annuity with a single life payout to determine immediate income planning.
Our retirement income calculator results are guaranteed values based on zero growth from now until the target retirement start date. No hypothetical growth.
Annuity Calculations
Annuity rates change all the time so please use these calculations as a reference point.
My goal is to illustrate a clear path to when full retirement age is appropriate for you, and how to achieve your desired retirement income goals starting today.
I’ve chosen the income rider as my measurement stick because fixed indexed annuities offer flexibility and liquidity where deferred income annuities do not.
I utilized the single premium immediate annuity (which does not offer liquidity nor flexibility) simply because of the higher annuity income payout amount. You could use an income rider for a lesser, but similar payout too.
Finally, I want to disclose that annuities aren’t necessarily the fastest way to a rich and rewarding retirement, but they are the only guaranteed and clear path to your retirement income goals.
When Can I Retire?
Scenario #1: How much money do I need to be saved today to generate $100,000 a year for life in retirement in the future?
The average retirement age is 60, 65, and 70 so I’ve used those metrics to solve for $100,000 annually starting at age 40.
Scenario #2: How much annual income can be generated in retirement from an annuity 30 years from now.
Since knowing how much money to save for retirement is problematic, I’ve illustrated ages 30, 35, and 40 with a target retirement age of age 60, 65, and 70 to show what kind of results can be generated 30 years from now.
How Much Money to Retire Earning $100,000 Annually?
In this scenario, I wanted to solve for how much savings for retirement you would need today to generate an annual income of $100,000 every year for the rest of one person’s life.
Unless your wealthy, I think most people would love a retirement lifestyle where they live on six figures a year for the rest of their lives.
With that said, I’ve presented how much savings you would need today to do just that.
How Much Money to Retire at Age 60
Today’s Amount of Savings to Retire at Age 60 Generating $100,000 Annually for Life, Guaranteed
How Much Money to Retire at Age 65
Today’s Amount of Savings to Retire at Age 65 Generating $100,000 Annually for Life, Guaranteed
How Much Money to Retire at Age 70
Today’s Amount of Savings to Retire at Age 70 Generating $100,000 Annually for Life, Guaranteed
How Much to Save for Retirement
In this scenario, I want to give you an idea of how much to save for retirement, long term.
Basically, I am providing you an idea of how much income you could earn if you purchased an annuity today along with monthly savings until retirement age.
These scenarios are meant to provide you a better idea of how much money should be saved for the next 30 years to earn a pension-like income in the future.
If you’d like to take all the guesswork out for yourself and find out how much you should be saving for retirement, inquire below.
Age 30, Plan to Retire At Age 60
Our saving calculator for retirement illustrates how much annual income can be generated in retirement from an annuity based on a deposit invested today plus monthly deposits for the next 30 years.
Disclaimer: Annuity Rates Change Regularly/Reference OnlyInitial Deposit + Monthly Deposits = Guaranteed Annual Income For Life
Age 35, Plan to Retire At Age 65
Our saving calculator for retirement illustrates how much annual income can be generated in retirement from an annuity based on a deposit invested today plus monthly deposits for the next 30 years.
Disclaimer: Annuity Rates Change Regularly/Reference OnlyInitial Deposit + Monthly Deposits = Guaranteed Annual Income For Life
Age 40, Plan to Retire At Age 70
Our saving calculator for retirement illustrates how much annual income can be generated in retirement from an annuity based on a deposit invested today plus monthly deposits for the next 30 years.
Disclaimer: Annuity Rates Change Regularly/Reference OnlyInitial Deposit + Monthly Deposits = Guaranteed Annual Income For Life
How Much Do I Need to Retire?
Now that you have a good idea of what’s needed to reach your retirement savings goals, there are few more items to consider when planning to retire.
Annual Retirement Expenses
If you’re closer to retirement, you want to figure out now what your monthly or annual retirement expenses will be such as mortgage payments and housing costs.
Most people want to maintain the desired lifestyle they currently have so look at your current monthly expenses that you can not live without, and use that figure as a milestone.
You should also include future expenses that will be added to your retirement spending level such as:
- Vacations
- Car payments
- Long term care insurance,
- Healthcare costs
- Life insurance
Inflation
Now that you’ve calculated your annual retirement expenses, the next step is to calculate inflation into your estimating retirement spending.
Currently, inflation hovers around 2.1% annually which means your retirement spending level needs the ability to keep up each year to maintain a healthy retirement.
If you don’t, your lifestyle goes down over time, and with medical expenses only increasing, you’re headed for financial trouble.
Age to Retire with Social Security
Choosing what retire age to turn on your Social Security Benefits is a critical decision to make.
When choosing a target retirement age, you must consider how much Social Security income you will receive now versus later, and if the amount is dramatically different, choose later.
One should consider what expenses will arise as you get older to determine instead of the monthly income you will receive today.
Example
You’re 66 years old, if you turn on Social Security Benefits today, your income is $1,900 a month.
If you wait 4 more years at age 70, your monthly income will be roughly $3,000 a month.
Which retire age will benefit you the most at age 80 when you may need to go into a nursing home?
What is the quality of your nursing home earning $1,900 a month versus $3,000 a month?
We didn’t even consider inflation, increasing taxes, and the always increasing cost of care between today and 20 years from now.
The Golden Years are often overlooked factors in deciding when to collect your Social Security Benefits. Is it worth it to retire early?
ElderCare
Believe it or not, there’s about a 70% chance you will need some sort of long term care when you get older such as home health care, assisted living, and nursing homes.
You don’t want to give up your retirement lifestyle due to these expensive costs.
Conclusion
Today we can start finding out when I can retire, and how much money to retire with.
Annuities are the only retirement vehicle that can tell you today how much guaranteed income you can receive in the future, and exactly how to get there.
We also found out when retirement age is appropriate to start taking Social Security income and considerations to retire smarter.
The next step is solving the following questions:
- How much guaranteed income do I want to live on in retirement?
- How much guaranteed income will my current retirement plans generate in the future?
- How do I achieve my retirement goals from here?
Fill out our form below to begin the process.
I can provide you custom quotes for retirement to meet those annual expenses in the future.
Figure out today how much money do you need for retirement to maintain your desired lifestyle.