Asking for a Friend - How much money should I have saved for retirement?

July 18, 2022

Question: How much money should I have saved for retirement? I hear there are different numbers you should have saved based on age, but I am not sure which number I should be aiming for.

Answer: For this question we get to use our favorite answer, “it depends”. We realize that every person is unique, so this number is different for every person, and it depends on your situation. The following are things to consider:

  • Determine how much you need. What are your living expenses, or what do you want to be able to spend in retirement?

  • In our experience most people want to maintain their current lifestyle in retirement, and many people actually spend more in the early years of retirement than they do in their working years.

  • What sources of income do you have? If you have a pension, you will need less in additional savings than someone without that ongoing income stream.

  • How long do you plan to work, or do you plan to work a part time job in retirement? The earlier you plan to retire, the larger the sum of money you will need to have saved.  If you plan to pick up a fun hobby like a part time job, that will reduce the amount you need to have saved.

Hopefully you realize that there are many factors that go into this calculation and that there is not one answer to fit everyone. If you are looking to get insight into what your number is, we would recommend speaking to a financial planner who can discuss these items with you.


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