Average retirement savings - insight into what you need to save, how and why?
Your active participation in your retirement saving plans are a top priority in your financial planning, financial education and ultimately your financial freedom.
Let's face it - we could all use a little freedom later on in life - unencumbered by debt and financial burdens
Retirement should be a time to reflect on a life well lived ... a successful career, raising a great family, friends and companions remembered and definitely a time for financial freedom.
Now is the time to take that wonderful trip, to take up a new hobby, to travel or to perhaps start a new small business and ... to dance like no one is watching!
AVERAGE RETIREMENT SAVINGS
To calculate retirement savings the following guideline is helpful:
It is generally accepted that you need to save your annual salary as follows in your quest for financial freedom in your retirement years -
12 times our annual salary (if you are single) -
or 15 times your annual salary (if you support your partner.
How much you should save also depends on:
How many working years generating an income remain for you?
What income in present day terms will you need to live comfortably in your retirement?
What anticipated inflation rates may apply?
What will the anticipated return on your savings investment be between now and your retirement date?
What is your marital status likely to be when you retire depending on your and their health and anticipated life expectancy?
Will your partner or spouse contribute to your collective monthly income with their retirement savings?
Will your dependents be financially independent?
How will other investments and assets contribute to your anticipated financial position upon your retirement?
Why should you save?
Global life expectancy is rising.
You are likely to need to support yourself for longer - without depleting your retirement savings .
Medical and health bills are likely to increase exponentially.
You may need to fund the higher costs of possibly moving to a retirement village or home with frail care (should the need arise).
How should you save?
There is no hard and fast rule.
You may want to develop a working relationship with a credible and trustworthy financial adviser for advice on practical investment options to suit your lifestyle and financial needs.
Credible and effective retirement saving plans need to:
-ultimately actualize how much you will need to live on every month when you do eventually retire.
-take into account the investment risks associated with the "ups and the downs" that your retirement investment savings are subjected to.
-keep abreast, and where possible, even exceed the exponentially increasing monthly cost of living .
-adequately fund your life expectancy - even if you live longer than expected.
Average retirement savings - start saving now and live your retirement dreams later.