How Much Do I Need to Retire?
When you think about retirement, it sure would be easier to have two people sharing the load. Multiple incomes can sure lighten the load when it comes to planning your future. It seems that most companies out there focus on the couples approach to retirement, but what about the single folks? Not necessarily widowed, but just simply, singles. There is currently a larger single market than ever before according to the Census Bureau for 2012. So, how does that affect you directly if you are single?
You need to begin to plan for anything that may come your way. Saving roughly 13-18% of your total income for retirement is a good place to do this, but how many of us can actually commit to that? Lets start at the basic fundamentals and go from there.
Unemployment. Why should you prepare for unemployment? Preparation is key to surviving in today’s world and ultimately when the US has a near 10% unemployment rate, I’d say it’s safe to say it could happen, so pay down your debts as you go and be prepared if that happens. I would not rely on unemployment checks from good ‘ol Uncle Sam, as it is not only temporary but also less income in most cases.
Disability. Most younger-folks relate this term to old age. The term disability, simply stated, means you are temporarily or permanently unable to work and naturally, unable to get income. Things happen in life that you may not be ready for. Even temporary disability can be a boat-rocking experience if something happened to you and you are single. You can opt for disability insurance in most jobs, some carries such as Aflac offer a slightly different approach, but in either case, keep you afloat with roughly 40-70% of your income.
Nest Egg. Your money needs somewhere to grow. I assure you, simply putting into a piggy bank by todays standards wont help it grow. Most jobs today have a sort of, savings or growth plan that you may be eligible to contribute to. The most common is the 401k. Think of a 401k as your mom or dad, telling you, “Give me some of your paycheck every week to put aside for you, and every so often I’ll throw in a few bucks too…” The concept of a 401k is relatively easy to set up, easy to maintain and even if you lose your job, it goes with you. Many people are afraid to start this process early, but I can assure you, the earlier the better and contribute what you can. Starting out small is more than adequate and after awhile, you’d be surprised at how it just grows.
How Much Do I Need to Retire? By planning for these three areas, you have an increased chance of success later in life. We do not all plan to be single, and if the world brings you a partner in life, then you are already ahead of the game. If not, you may be ready for a comfortable retirement all by yourself.