When the day finally comes to retire, you want to be financially ready. Melanie Bakala at State Farm says you probably know you need to save, but how much? Do you have a clear idea of how much money you’ll need to live on? If not, estimating your retirement income for your projected lifespan should be your next step. That’s where Bakala in Lacey/Olympia and Shelton can help you. They can assist in analyzing the factors needed to answer the question, “What’s your retirement plan?”
Maintaining Your Standard of Living During Retirement is a Common Goal Says Melanie Bakala at State Farm
Most retirees want to maintain their standard of living during retirement. To accomplish this, Bakala and financial experts say you’ll need between 70-80% of your pre-retirement income.
Why less? Bakala explains that retirement typically triggers several spending changes. Your cost of living will change if you’ve paid off your mortgage and other loans, your children have finished college and moved away, or you no longer have working- and business-related expenses. Plus, now that you are retired, you’ll no longer be contributing to retirement plans.
“Of course, your specific situation will dictate the amount of money you’ll need to live on,” says Bakala. For example, health-care costs have increased, and some people may need to spend more on health insurance. Also, some retirees want to amplify their spending on leisure activities such as travel, entertainment and hobbies.
Your Estimated Lifespan is Another Factor in Retirement Planning
Bakala says you also need to consider how long you might live. Today, people are generally in better health and living longer, more active lives. According to the Social Security Administration, a man reaching age 65 today can expect to live to 84, a woman to 87. Those are only averages, and one in 10 people live past age 95.
Contact Melanie Bakala to See if You Are On Track for Retirement
With so many factors, estimating retirement needs can be difficult. Contact Melanie Bakala to learn more. She can help you see if you’re on track and have you answer a few questions about your goals, examine how much you’re saving, and review your retirement income sources. Visit their Lacey/Olympia or Shelton websites or call 360.972.7905 (Lacey/Olympia) or 360.426.2428 (Shelton).
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