Planning your retirement can be scary. Trying to expect the unexpected is rarely easy. According to a recent article by CNN Money, budgeting and planning expenses for after you retire is a common struggle.
“One of the trickiest things about saving for retirement is estimating your future living costs. After all, it’s hard to predict the extent to which inflation will rear its ugly head and how lifestyle changes will cause your budget to shift.”
The article discusses poll results regarding what people envisioned for their retirement spending, and how those ideas added up to reality.
CNN Money also went on to explain which expenses would likely stay the same, which ones would increase, and those likely to actually increase after retirement. The article summarizes the majority of Americans in retirement.
“Most seniors need roughly 80% of their previous earnings to live comfortably in retirement, and that tells us that the majority won’t see much of a drop in their living costs. After all, financial experts these days are urging workers to set aside 15% to 20% of their earnings for the future, and that’s great advice. If we back out that 15% o 20%, an 80% income replacement target fits just right.”
To read the full article, and how to ensure you are saving enough for retirement, visit the CNN Money website here.