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How Much Money Do You Need To Retire?

A woman puts coins into a piggy bank.

Retirement planning is essential for everyone, regardless of their age or financial situation. Planning your retirement means preparing future financial stability and security for not just yourself, but for future generations as well.

As you get older, you may find yourself often wondering, “How much do you need to save for retirement?” As you may be able to guess, however, it can be hard to figure out how much you need to retire at 55, 60, 65, or any other age. Everyone’s situation is unique depending on a number of factors, all of which add up to increase the final sum.

If your goal is to retire soon, it’s imperative to understand your situation and know how much you need to save. Landmark National Bank is here to help with a guide that can help you calculate the required amount based on your age, expenses, location, and sources of income.

Start Saving Early

The earlier you start saving, the easier it is to achieve your retirement goals. Financial experts recommend starting in your 20s or 30s, as it gives you enough time to bolster your savings portfolio. If you plan on retiring in your 60s, it’s best to invest up to 15% of your income in retirement planning.

Start by calculating the estimated amount you will need at retirement based on your expected income requirement. Next, subtract any retirement income from social security, pensions, or other benefits, as these also impact the amount you need to save before you retire.

Consider Your Monthly Expenses

Your monthly expenses are a crucial factor in determining how much you need to save. This includes bills, food, travel, entertainment, and any other costs you incur. You need to calculate how much money you need to maintain your lifestyle in retirement and adjust accordingly.

Living expenses are dependent on your location, as urban areas have a higher cost of living than suburban zones. Don’t forget to account for potential healthcare costs, which can significantly increase as you age.

Assess Your Income Sources

Your income sources in retirement also play a significant role in determining how much you need to save. Social security is currently capped on a monthly basis, so it might not be enough to cover your expenses. If you have a pension, it can offer an additional form of income, but it may not be sufficient either.

You may need to rely on income from investments such as stocks, bonds, and real estate. Consider your risk tolerance and investment strategy when assessing your income sources.

An older couple looks over documents as they plan for retirement.

Plan Based on Your Retirement Age

Your retirement age has a significant impact on how much you need to save. The earlier you retire, the more money you need to save to sustain your lifestyle. For instance, if you plan on retiring at 55, you need to have saved 8-10 times your annual income by the time you retire. On the other hand, if you plan on retiring at 70, you don’t need to save as much because you will rely on social security and other benefits that will have built up.

Seek Professional Financial Advice

Seeking professional financial advice from the experts at Landmark National Bank can help you determine how much you need to save for retirement. Our friendly personal bankers can assess your finances from an objective perspective and recommend a suitable savings plan based on your circumstances.

Open a Savings Account with Landmark National Bank

At Landmark National Bank, we pride ourselves on providing a comprehensive selection of retirement savings solutions aimed at helping you reach your financial objectives. We understand that planning for retirement can feel overwhelming, but our goal is to simplify the process and make it accessible for everyone. Whether you’re just starting out on your savings journey or asking how much do you need to retire at 60 or how much do you need to retire at 65, we have you covered.

When you choose to keep your money with Landmark, you’re not just choosing a bank; you’re choosing a financial partner dedicated to helping you secure a comfortable and worry-free retirement. Open a savings account with Landmark National Bank today and take the first step towards achieving the financially secure and comfortable retirement of your dreams! Visit your nearest bank branch location to get started!

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