As you look ahead into the new year and prepare for retirement, the elusive question of “how much do I need?” may be looming over you. Unfortunately, there is no definite answer. The logic is simple, however–save too little and you might end up having to go back to work or setting the expectations too high, and you might end up working harder and saving more than you actually need to.

Everyone faces different circumstances; therefore, the amount each person needs to retire truly varies. An alarming number of Americans aren’t saving enough with nearly half having less than $10,000 stashed away for retirement.¹ Why is this? Simply put, Americans don’t seem to have an idea of how much they need.

According to a study, a good rule of thumb states you should have 10 times your salary in savings if you want to retire by age 67. Here it is broken down by age milestones: ²

• By 30 – Have at least one year of salary saved
• By 40 – Have three times your salary saved
• By 50 – Have six times your salary saved
• By 60 – Have eight times your salary saved
• By 67 – Have 10 times your salary saved

Benchmarks are a good way to see where you stand in a perfect world, but they incorporate many assumptions such as life expectancy, retirement age and retirement spending. Therefore, these recommendations may or may not apply to you. No matter where you stand, the good news is there are still ways you catch up on savings. The first important step in determining how much you need is to do a little brain exercise with these thoughts.

It is critical to take a look at your expected income expenses in retirement. First, you will want to identify your retirement income sources:

1. What is in your retirement savings, including 401(k), 403(b), and 457 plans?
2. What is your estimated Social Security benefit?
3. Will you be receiving a pension? 
4. Do you have any annuities in place?
5. Do you have any other non-retirement savings, including brokerage accounts, savings accounts, and certificates of deposit (CDs)?
   1. Then, you will want to think about what some of your expenses will look like during retirement:
      1. Will you still be paying off your home mortgage? Car payments?
      2. What can you expect for healthcare? 
      3. Will you be assisting with college expenses for your children?
      4. What extra expenses can you expect for leisure?
      5. Do foresee any major repairs or large purchases?

      By summing up your expenses and then consider your projected retirement income, you’ll see how much of a surplus or deficit you might have.

      What can you do if you feel like you haven’t saved enough?

      If it seems as if you haven’t saved enough or if you simply just don’t know where to begin, it’s time to start taking action no matter if you’re near or far from retirement. Any decision or action you take can lead to improvements and help you achieve a desirable retirement. And as your dedicated team, we are here for you. Give us a call and let’s review your current situation, discuss priorities, and weigh out the options for your personal roadmap to a comfortable and happy retirement.

      Footnotes, disclosures, and sources:

      Securities offered through SCF Securities, Inc. • Member FINRA/SIPC • Investment advisory services offered through SCF Investment Advisors Inc.• 155 E. Shaw Ave., Suite 102, Fresno, CA 93710 • 800.955.2517 • 559.456.6109 FAX. . SCF Securities, Inc. and Creative Financial Strategies, LLC. are independently owned and operated. Securities offerings limited to residents of AZ, FL, ID, MO, NM, NV, NY, & TX.. The content within this document is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This document is not an offer to purchase, sell, replace, or exchange any product. Insurance products and any related guarantees are backed by the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Some types of permanent insurance may require consistent premium payments, or the policy may risk lapsing. Unpaid policy loans decrease

      ¹ https://www.gobankingrates.com/retirement/planning/why-americans-will-retire-broke/ 

      ² https://www.cnbc.com/2018/04/11/how-to-figure-out-how-much-money-you-need-to-retire.html 

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