The estimated average monthly Social Security benefit for a retired worker1
Retirement Planning: 3 steps toward financial success
Thinking ahead to the money you’ll need in retirement? Bravo for taking this step toward long-term financial wellbeing.
With a little introspection – and some number crunching – you can determine if you are on track for the golden years of your dreams.
Here’s what to do:
Review your finances
Check the current balance of your retirement accounts, review what you’ll receive in any pensions and visit Social Security Administration’s website to determine your expected monthly benefits.
The percentage of retirees who said they or their spouse/partner received the following benefits:
receive Social Security
draw from an IRA or 401(k)
have a defined benefit pension
have savings outside a retirement account
Source: Board of Governors of the Federal Reserve System, Report on the Economic Well-Being of U.S. Households in 2017.
Assess your retirement goals
Consider where you’ll live, the lifestyle you want and when you’d like to start collecting Social Security. Some things to take into account:
Average U.S. household annual spending in households headed by someone 65 or older2
The rule of thumb for the amount you can sustainably deduct from your retirement savings annually
The potential extra percentage earned per year for each year you wait to claim Social Security benefits beyond your full retirement age
- Social Security Administration, Bureau of Labor Statistics 2019
- Social Security Administration, Bureau of Labor Statistics 2016
Do some calculations
While 2 in 3 workers feel confident about how much money they’ll need to live comfortably in retirement, just 4 in 10 have tried to calculate the actual amount they will need.
Check out one of the many retirement readiness calculators online, which can help you to eliminate guesswork.
Source: Employee Benefit Research Institute/Greenwald & Associates 2019 Retirement Confidence Survey.
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