Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

For many investors, figuring out just what they need to save for retirement comes down to a nice, neat round number.

Whatever that is – $750k, $1 million, even $5 million – this number often represents the end goal for savers. But this number doesn’t really tell the whole picture when it comes to retirement savings. What we really should be focusing on is income.

And it looks like we are going to need a lot more of it than we think.

According to a few new studies of what retirees actually spend their money on, many of us have some work to do with our savings. It turns out that we often spend more than what we have been estimating.

Higher Daily Costs

One of the biggest axioms in all of personal finance and retirement planning is that you should count on spending about 75 to 80% of your preretirement income during your golden years. This takes into account certain things like commuting and professional organizational memberships that are no longer needed when you retire. Pretty much all standard issue retirement calculators use this formula when trying to come up with a ‘number’ for savers to shoot for. Check out our IRA guide for tips on saving.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 752004817
News

The Market Wrap for February 15: Trade Is Back in the Saddle

The good news kept coming this week for investors. After last week’s Federal Reserve-induced...

Premium Defensive%20stocks
News

Are Defensive Stocks Still Cheap?

One of the common themes for 2018 and now 2019, has been the return to volatility. Risks have...

News

Trending: Delivery Industry Sees Amazon Threat

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...