One of the most common questions among couples planning for their golden years is, what is a good monthly retirement income for a couple? The answer isn’t one-size-fits-all. Much depends on your lifestyle, expenses, and what you envision for retirement. This article dives into the factors you need to consider and how to set a goal for your retirement income.
When planning for retirement, you should first consider how much it will cost to maintain your current lifestyle. This includes regular expenses such as:
It’s also crucial to account for inflation. The cost of living tends to rise over time, so what seems like a sufficient amount now might not be enough in the future.
Retirement is also the time many couples look forward to traveling, taking up hobbies, or simply enjoying leisure activities. You must factor these into your retirement income goals:
Life is unpredictable. Even in retirement, unexpected expenses can pop up:
Having a safety cushion in your retirement income for such unforeseen costs can be a wise move.
Once you’ve estimated your monthly expenses in the above categories, add them up. This will give you a clear picture of how much you’ll need every month during retirement. For instance, if your living costs amount to $2,000, leisure activities to $500, and you set aside another $500 for unexpected expenses, your monthly need would be $3,000.
Now that you have a number in mind think about where this money will come from:
The sum of these sources should ideally match or exceed your estimated monthly need.
SoFi states, “Retirement savings refers to money saved in tax-advantaged accounts, such as a 401(k), 403(b), 457 plan, or Thrift Savings Plan (TSP). Whether you and your partner have access to these plans can depend on where you’re employed.”
Planning for retirement is all about ensuring you can maintain a comfortable lifestyle without the regular paycheck you’ve been used to. By breaking down the costs and understanding where your money will come from, you can set a realistic monthly retirement income goal. Remember, it’s always a good idea to review and adjust your goals as circumstances change and consider seeking advice from financial experts to make informed decisions.
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