Calculating your retirement needs
There are a number of factors to take into account in determining your retirement needs.
They are as follow:
- Find out what annual income, before taxes, you would like to receive during your retirement in today’s dollars.
- Determine what age you wish to retire.
- Ascertain your future retirement income sources. These will likely come from three main sources: Government benefits,Private pension plans and,Personal savings.
- Other assumptions you will need to make are future tax rates, inflation and rate of return on your investments.
It is advisable to contact a qualified financial advisor to assist you with the preparation and implementation of your plan and then provide you with periodic updates.