Do You Have Enough Money To Retire?
Before you get too depressed about retirement, remember that the concept of actual retirement is not more than 100 years old. It started with social security in the US as a federal program to help people pay for retirement. Note that it was never intended, and really doesn’t, to provide enough income for a comfortable retirement by itself.
It is really impossible to make one blanket statement about how much money a person would need to retire. People have different expectations, alternate sources of income, and situations. A common rule of thumb is that a 30 year old should be putting aside 15% of their income, or enough to replace 80% of their income. You could count on social security to replace the rest (we hope).
When planning for retirement, you may also have some goals to have a mortgage and other debts paid off. That ways, you would just have to pay for upkeep, insurance, and taxes on your home. Losing the mortgage would probably give you a big boost in your disposal income.
Do You Even Plan On Retiring?
Some people can still retire early, or at a traditonal retirement age of 65. But many people these days have no real plans to retire totally. There is a trend to push up the retirement age, and a majority of boomers figure they will work – at least part time – well past the day they start collecting social security.
Some may plan to stay at their current job or buiness. Others want to move into part time work or even start a new career or business. It is common to see teachers retire, but then take substitute teaching jobs. It is also common to see engineers or lawyers rertire, but then go into part time teaching jobs in high schools or community college.
Some plan to find work because they are happy with their profession, some want to realize dreams, and probably most people just need the money!