Dear Kim,
The new year is finally here, and one of my resolutions (besides spending more time hiking and less time watching Netflix) is beginning to devote time to planning for my retirement. I turn 55 in April, and I plan to retire at either 65 or 67. I was hoping you could share a timeline for what I need to do and get in place in the next ten years or so. Thanks, and happy 2025!
Thanks,
Eyeing Retiring
Dear Eyeing Retiring,
There is a lot of questions to consider as you look toward retirement: what will your income needs be, how much have you saved to this point, and what sources of income will you have?
Everyone has different answers to those questions … so when I am asked ‘how much do I need to have saved and by when’, the answer is different for everyone.
It is time for you to sit down and put pencil to paper and see where you are in your budget and your future projected income. At that point, you can see if you will have a shortfall, and see what your savings rate needs to be for your remaining working life.
The old adage about “knowing where you’re going being critical to getting there” is true. You can’t hit a target you can’t see.
Begin by envisioning what you want your retired life to look like. Are you going to travel, take up a new hobby, begin a new career? All those things will have an impact on how much money you will need.
Once you have your current budget and income and know your goals for the future, you can then start to develop your yearly timeline.I wish you the best as you plan for the retirement of your dreams. And you should dream of what you want it to be! I encourage you to really spend some time thinking about it. Most people don’t do that enough. They have some random idea of what retirement will be, but nothing more than that. This time will be an important part of your life and it deserves some planning!
Best,
Kim
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