There are many different numbers that you can stumble across and doing research about establishing your retirement strategy. Especially if you’ve been saving for retirement for some time and are approaching retirement age, it’s important to revisit these numbers and this strategy to decide if it’s in line with what you hope to accomplish.
Knowing the 4% rule, for example, is a good baseline for understanding what you can spend in the first year of retirement. Previous research has found that using this rule allows many people to withdraw from their retirement portfolios for at least 30 years. There’s also the 25x rule to consider, which allows you to multiply your current annual budget by 25 and to identify the overall number you need to have in retirement accounts to allow you to retire in a comfortable manner. Look at how these numbers stack up with your individual planning strategy and make adjustments as necessary.
You will also want to have a contingency plan for your retirement benefits in the event that something happens to you. This can be incorporated into estate planning strategies handled by an experienced and dedicated estate planning lawyer.
Your retirement plan should be there to support you in older age, but it also can’t be considered in a vacuum. It’s part of a bigger strategy for you to think through issues such as elder law and long term care needs, passing on assets to beneficiaries, and how you will afford retirement either as part of a married couple or as a single person. With increasing longevity, it’s become even more important to think through your plans for how you’ll save what you need for retirement.
Contact a Pasadena estate planning lawyer today to learn more about how your retirement impacts other aspects of your life, including your personal estate.