How much do I need for retirement?

Start with your existing budget and be realistic about your expenses

During these tumultuous economic times, those close to retirement may be feeling anxious. You may have been offered an early retirement package and are feeling overwhelmed to make a big decision during an uncertain time.

Often clients will ask “How much do I need to retire?” Some have a goal or magic number in mind for how much they wish to save before deciding to retire while others are unsure where to even start. One of the first steps to figuring out your retirement number or whether you can afford to retire is to take a good look at your budget. Getting an idea of how much you’ve actually been spending is a good place to start. You can then reduce any employment-specific expenses such as dry cleaning or parking at the office and add in any additional costs associated with hobbies and additional travel. Being realistic about your expenses will help you determine how much you will need to spend in retirement.