How Much Should You Save for Retirement?
Retirement planning is essential because it is virtually impossible to live comfortably as a senior on Social Security alone. According to Motley Fool the average amount of money a retired person receives each month form Social Security is just $1,341. This is not anywhere close to enough to live comfortably on. Most people do not get defined benefit pension plans from their employers any more, so you will likely be dependent on what you have saved and your Social Security to live on. This means it is up to you to save enough if you want financial security during your golden years.
Zimmer Law Firm can provide you with assistance making sure that you do retirement planning right. Our legal team can help you to determine how much you need to save for retirement and can help you to use legal tools like IRAs that make it much easier to reach your financial goals. Give us a call today to discover more about how an Ohio retirement planning lawyer can assist you with creating a plan that will allow you to be comfortable as a senior rather than worried about money all the time.
How Much Should You Save For Retirement?
There is a lot of different advice out there about exactly how much you need to set aside to save for retirement and about how much you need to have put away in order to retire comfortably. This is why it is so important to talk with a Cincinnati retirement planning lawyer so you can get advice personalized to you from an experienced attorney who can evaluate your individual financial situation.
CNN Money indicates that most financial advisors suggest setting aside at least 10 to 15 percent of your income for your retirement, starting when you are in your 20’s. Of course, if you plan to live in a high cost of living area or if you start saving later, you will need to put aside more money.
To determine the total amount of money you want to have saved by the time you reach retirement age, CNN Money suggests considering how much money total you are going to need to live on each year and figuring out how much of that money has to come from retirement savings rather than from Social Security or a pension. For example, if you will be getting $24,000 in Social Security and you want to live on $44,000 a year, you would have a $20,000 shortfall between what Social Security provides and what you need to live on.
You typically need between $15 and $20 in savings to cover every dollar that you are going to be spending if you don’t want to eat into your nest egg, so you would need around $300,000 to $400,000 in retirement savings if you want to be able to take $20,000 a year out of that savings.
Why is it Important to Get Retirement Planning Advice?
You need to get retirement planning advice so you can make smart choices about retirement savings and not fall behind on putting aside money that you need for financial security during your senior years. According to Investopedia, the average amount of money saved by people aged 55 to 64 is just $104,000 even though this age group is very close to retirement. This amount of savings would produce an income of only $310 per month, which is not enough even when combined with the average Social Security payment.
Many people tend to fall behind when they are young. In fact, the majority of people in their 40s are already “dangerously behind,” according to Investopedia. It can be hard to save enough to retire on when you are trying to fulfill other money goals like buying a house or raising a family. You should talk with a retirement planning lawyer to find out what your options are. Accounts like IRAs can give you tax benefits for saving, which will make it easier to put aside enough money. Saving when you are as young as possible also means you can put aside less each month because compound interest will work in your favor, while setting up an automated savings plan can help you to ensure you meet your goals.
Getting Help from A Cincinnati Retirement Planning Lawyer
Zimmer has helped many families of all age groups to make the right retirement plan for their stage of life. We help young people make smart choices when starting out, and we help those in the middle of their careers to stay on track or to play catchup. We also assist seniors in trying to make their retirement money last.
To find out more about making a comprehensive retirement plan with help from our legal team, you can join us for a free seminar. You can also give us a call at 513.721.1513 to talk with an experienced Ohio retirement planning lawyer about how we can help you.