***This post may contain affiliate links. Please see my disclaimer here***

For some people retirement serves as a sweet relief to finally enjoy life.

For others it can come with the feeling of dread of not knowing where their next paycheck would come from.

That’s why this post has been written for you if you’re asking yourself how much money will you need to retire?

The answer to the question, how much money will you need to retire? Depends on the type of life you want to live after retirement.

  • Why do you want to retire?
  • When would you like to retire?
  • Where would you like to live when you retire?
  • What would you love to do?
  • Where would you like to travel to?

These questions and more burning questions you may be asking yourself.

You are never too young or too old to start asking these questions.

It is important you start thinking about your nest egg when you retire.

If you haven’t really given it any though, you can start right now and reading this post is the first step.

Why do you want to retire?

People retire for various reasons.

One is that they reach the age requirement for retiring.

Others may not be because of the natural flow of things.

Some people retire and retire early because they want to spend more time with their families, they want to see the world or they just want to rest.

It’s been a long 30 years of work, right?

Have you started a side business that you need more time in?

So what’s your reason for retiring?

No matter what that reason is, you will need to have money to survive. Hence, this post.

When do you want to retire?

When would you like to retire?

At what age would you like to retire? Do you plan on retiring early or are you comfortable retiring when your company allows it?

Whatever your answer may be largely depends on how much you should save every month towards retirement.

Recommended Article:  What Is an IRA?

If you plan on retiring earlier than you have to, then you have to take action now and start looking for ways to save towards retirement if you haven’t started yet.

Some companies offer a 401(k) for employees towards their retirement. But is it enough for you to enjoy retirement?

How many retirees have you seen travelling the world on their 401(k).

But if you want to retire with your 401(k) then you can try increasing the amount you put in there.

What if your employers don’t offer a 401(k)? What would you do?

I recommend you start saving as soon as possible every month towards your retirement.

I don’t know about you but I don’t like to be a burden to people and would not have my kids and family be obliged to take care of me after I retire.

There are things you can start doing right now to make sure you have a steady nest egg when you retire, like:

  1. Saving very well starting from today, and
  2. Starting a side business you can continue with when you retire that will bring in steady income

Think about when you want to retire, what are you going to be doing during retirement and where you would live.

How much will you have to spend every month, on an estimate?

How long do you think you will live after retirement.

Assuming you retire at 65 and you live another 30 years (95).

We’re hoping for the best here and if you don’t live up to 95 you would have left something extra for your kids and grand kids.

So let’s assume you spend $5000 a month, for 12 months in 30 years. That will amount to about $1.8 million dollars in 30 years.

What will you have to do to save $1.8m in 30 years?

How much will you have to save every month from now till you retire to be able to afford your basic needs after retirement?

Where would you like to live when you retire?

Do you think your home will be paid off by the time you retire?

Will you keep living there after you retire?

If you will then you will have reduced your monthly expenses.

Knowing the answers to the questions will give you an idea of the amount you need to save every month to survive after retirement.

What would you like to do after retirement?

Will you like to travel? There are many things to do after retirement that requires money, like;

  1. Travel
  2. Purchase an RV
  3. Remodel your house
  4. Buy a new home
  5. Expensive hobbies, etc.

What will you like to do after retirement. Some people will prefer to just chill and read books.

That’s okay.

But what if what you want to do are fun things that will need you to spend?

Recommended Article:  Safe Withdrawal Rate For Retirees Living Off Their Savings

Then that will have to be factored into how much you save today.

Where would you like to go after retirement?

Do you like to travel?

Where would you like to go after retirement?

This should also be a factor when you’re thinking about how much you should save for retirement.

A side note: Saving your money should be a thing you do regardless of whether you’re thinking about retirement or not. It is a good habit to imbibe and there’s no negative impact saving your money can have. Apart from retirement, there are many other reasons you need to save your money.

Wherever you would like to go or travel to, you’ll need money and if you don’t have enough money saved up to travel, your butt will have to sit at home watching cheap entertainment.

How much money will you need to retire?

This will depend largely on what you plan on using your retirement years for.

Ask yourself, how much money will you need to retire?

Then start working towards saving to get to that amount.

If you plan on wilding out and travelling, eating the best foods and doing expensive things, you should start saving now and saving big.

When you make you calculations and get the rough amount you’ll need for retirement, your 401(k) might not be enough to do all that.

You’ll have to think of things to do to make more money to be able to live that kind of lifestyle.

Know the amount you need and save towards that.

When should you start saving for retirement?

Now.

Not tomorrow or next week or next month.

The best time to start saving for retirement should be now. If you want to know how to start saving money, click one of the links below;

There is no better time to start saving money for your retirement.

In fact the earlier the better and the more money you’ll have to enjoy your retirement.

Having money after retirement

Is it important to have money after retirement? I’m sure you’re laughing at this question right now.

Of course it is!

Apart from your 401(k) and your family taking care of you, you need to have your own cheddah to spend and do the things you want to do.

It is vital to have money after retirement. We will not go in depth into this as you already know why you should have money after retirement.

How Much Money Will You Need To Retire?

Not having money after retirement

Think of what your life would be like after retirement if you don’t have money.

Pay off debt. Budget like a boss. Reach your financial goals.
Recommended Article:  Safe Withdrawal Rate For Retirees Living Off Their Savings

You must have seen many elderly people working into their seventies and eighties at jobs because they have to.

Not because they love the job.

Without money after retirement your life won’t be a very nice life. An eighty year old working at a minimum wage job?

Not cool.

What about your meds? How will you get them?

Please it’s VERY IMPORTANT you start saving money right now for your retirement so you can have at least some peace of mind.

What do you have to do to enjoy your retirement?

Write down how you want your retirement to be.

Where will you go, where will you live, will you travel? etc.

Once you find out what you want your retirement to look like and how you much you’ll need to spend each month, the next step is to start saving to meet your retirement needs.

If you’ll have to save more money or start a side business, do it. It is vital you have enough cash coming in after retirement to enjoy it.

I already have the money for my retirement saved up, what next?

If you are among the lucky few who already have their retirement nest egg ready and you want to know the next steps to take, I say keep saving.

What is the benefit of saving more when you already have the money you need?

  1. Inflation: Because you have $1.8 million now doesn’t mean the money will be worth that same amount when you retire. That’s why I would advice you to put that money in a savings account to earn some interest on your nest egg so by the time you retire it would be more than $1.8 million.
  2. You can’t have enough: After planning for the type of life you want to live during retirement, there will still be some oversight. Things you did not think about while planning. So it’s good to have some extra in case of unforeseen circumstances.
  3. You have something for your family after you’re gone: If you save more than enough and you pass on, your family can benefit from your prudence.

Finally, how much money will you need to retire?

Do you have any questions or suggestions or you just want to add to this discussion, let us know your answer to the questions below:

  • Why do you want to retire?
  • When would you like to retire?
  • Where would you like to live when you retire?
  • What would you love to do?
  • Where would you like to travel to?

Let us know your answer to these questions in the comment section below.

Have you started saving for your retirement?

No?

You should start now.

Manage Your Money Better

Below are some personal finance books I recommend to help you save more money. They have helped me a lot and I'm sure they'll help you in your journey to financial freedom.

  1. The Compound Effect by Darren Hardy
  2. Total Money Makeover by Dave Ramsey
  3. I Will Teach You to Be Rich by Ramit Sethi
  4. Master Your Money (Super Bundle)
  5. Need an extra $2,500? Get loans up to $5000
  6. Are you in debt? Get free debt consultation and find a solution to your debt
  7. Unshakable: Your financial freedom blueprint
  8. The New Money Masters
  9. Tools to make money in tough economic times

I have read about 5 out of the 7 books and I can boldly say they have helped me handle my finances better. I believe in them because they have helped me in my financial journey and I think they’ll help you too.

Categories: Retirement

0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.