How Much Money Do You Need to Retire?

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting optout@55places.com. Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

Annually reviewing your goals and financials is crucial to staying on the road to a rewarding retirement.   
ljksdafadsf
Annually reviewing your goals and financials is crucial to staying on the road to a rewarding retirement.   

When planning your retirement, the first question you’re likely to ask is how much money you will need to save before you can stop working. The answer is different for everyone, but the process of finding the answer includes considering the same basic questions. You will have to think about the lifestyle you want to have in retirement, possible healthcare needs, and emergencies, and how you will adjust for inflation.

How do You Want to Live?

Planning your retirement lifestyle is an important step toward deciding how much money you need to retire. Do you plan to travel, buy a dream car, go back to college or pursue a long-forgotten hobby? Do you want to help your grandkids pay for college, buy a vacation home, or buy season tickets to the opera or for your favorite sports team? The way you envision your retirement will dictate the needed size of your nest egg.

Start putting together a list of the things you want to do in retirement and estimate the annual cost of your dream lifestyle. One common guideline is that you will need about 80 percent of your current annual salary after you retire. However, that will depend on your retirement plans.

Plan Ahead

Once you have an idea of how much you will need each year, consider your life expectancy and the age you would like to retire. You can use this information to figure out a rough estimate of the amount of money you would need to meet your retirement goals. You may decide that you need to compromise your plans either by retiring later or adjusting your retirement lifestyle to be more in line with what you can afford.

When planning your retirement goals, it’s important that you remember to adjust for inflation. It’s easiest to plan your goals in today’s dollars, but you then need to make adjustments to keep inflation from causing your nest egg to fall short.

Another important factor to remember is that your healthcare needs are likely to change in retirement. As you get older, you may have more medical, dental and vision expenses than you do now. You should also prepare for emergencies (medical or otherwise) which could take a significant bite out of your retirement savings.

What about a Second Job?

Many active adults find that a partial retirement is better than stopping work entirely. Having a part-time job, taking on consulting work or even starting a second career will increase your income and potentially offer additional employee benefits. Instead of making plans to stop working completely, you may want to consider a tiered approach to retirement, where you can cut back on your hours (and income) incrementally.

There is no magic number for how much money you will need to retire. The goal for your nest egg will vary from other people’s plans. To find your own best approach, you will have to consider your retirement goals, estimate your life expectancy and remember to adjust for inflation. These steps will help you find the right answer for your own retirement goals.

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting optout@55places.com. Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

Palm trees lining a path at Regency at Babcock Ranch in Punta Gorda, Florida.

New Active Adult Communities Added to 55places.com

In this comprehensive roundup, we bring you the latest additions to 55places.com—a trusted resource for exploring active adult communities. Over the past 30 days, several new communities have joined the ranks, each offering different amenities and locations.

Close up on a tiny wood home model on green grass, a representation of the real estate market.

Real Estate Summary: This Month in the 55+ Housing Market

This month, we brought in more than beautiful flowers. There are also lower mortgage rates and new homes for the housing industry! Below is a more in-depth breakdown of what happened and why now is an excellent time to enter the market.

The outdoor resort-style pool at Sun City Huntley in Huntley, Illinois.

Exploring Del Webb Communities in Illinois

In Northern Illinois, Del Webb communities offer the resort-style amenities, active lifestyles, and low-maintenance homes many retirees seek in their next communities. Take a closer look at each one!

Aerial view of Kissing Tree, a 55+ community in Texas.

The Best Communities in Texas for Snowbirds

There are many good reasons to retire in Texas, but if you’re only looking to spend the winters in the Lone Star State, you’ll still find plenty of options. Texas is home to dozens of active adult communities that appeal to snowbirds. Read on for some ideal active adult communities for snowbirds to make their roost in Texas.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top