Robert M. Ryerson, a Certified Financial Fiduciary with Freehold, New Jersey’s New Century Planning since 1998, studied economics at Rutgers University. In addition to his work at New Century Planning, Robert M. Ryerson serves as a financial strategist with The Society of Financial Awareness.
The Society for Financial Awareness is a national 501(c)(3) nonprofit that promotes financial literacy in a variety of areas, including helping individuals prepare for retirement. Exactly how much money is necessary for a comfortable retirement is arguably the most commonly asked question when it comes to financial planning. While common answers include between $1 to $1.5 million in savings or 10 t0 12 times a person’s current income, the truth is that each individual’s retirement goals will be different.
For example, a person’s estimated living costs during retirement will play a significant role in determining how much money should be saved, particularly during early retirement. Many individuals continue spending at the same rate immediately after retiring, and may actually spend more as they travel and check off other lifelong goals and dreams. On the other hand, some individuals prioritize peace and quiet when it comes to retirement, and wish to scale down and simplify expenses. In this case, the rough estimate of 70 to 80 percent of pre-retirement income may be more accurate.
There are a number of additional factors that must be considered, such as the rate at which savings generate liquid cash and options for families or individuals approaching retirement who feel their savings might not be adequate. With these and other questions and concerns in mind, individuals should reach out to a respected financial planner, particularly one with experience in retirement planning.
