If you’re unsure about retiring and are considering delaying retirement, you must consider if you have enough retirement savings. Do this before making your decision. Examining retirement savings benchmarks and having a comprehensive financial plan that outlines specific actions are the first steps toward knowing if you should delay your retirement. Also, some questions to ask yourself to help determine your retirement readiness include:
In addition, there are several indicators of retirement readiness beside the above topics. All in all, knowing if you are on track or should delay retirement should include age-based benchmarks aligned with your goals and your unique situation. To determine your unique retirement savings benchmark, you will need the following information:
Another key point is to aim to replace 80% of your income in retirement as a starting point for your retirement savings. This may help you maintain the same lifestyle you have today. Once you determine how much you will need in retirement, adjust your retirement savings benchmark up or down. Although adjustments are based on your unique situation and account for all sources of retirement savings income in your calculation:
In addition here’s an example of how age-based benchmarks work:
|Current Age||retirement savings need||retirement savings benchmark|
|Age 55||7 times your yearly salary =|
|Age 60||8 times your yearly salary =|
|Age 65||9 times your yearly salary =|
|Age 67||10 times your yearly salary =|
Once you have considered your retirement readiness and age-based benchmarks and delaying retirement. In addition, work with a financial professional to help you identify the actions necessary to pursue or delay your retirement. Your financial professional may also include:
However, financial planning is about saving enough for retirement and determining specific retirement income goals, strategies, and actions to achieve them. In addition. deciding if you should be delaying retirement, comprehensive planning considers your future expenses, liabilities, and life expectancy. Therefore once you have the information, you can make an informed decision about your situation.
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In addition, JP Williams is the Founder of Pillar Wealth Group who lives and works near Columbus, Ohio. JP founded Pillar Wealth Group with over 17 years of experience and specializes in financial planning, retirement planning, investment management, risk management, college planning, and estate planning. Contact us today to get started with your financial wellness journey. Contact us today to schedule an introductory meeting!