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How Much Income Will you Need When you Retire? - Motley Fool
If retirement is on your horizon, say within the next 5 or 10 years, you may wonder how much income you will need to live comfortably during your so-called “golden years.” And that is an excellent question to be seeking answers to now. Traditionally, most financial advisors suggest that you will need about 80% of your preretirement income to be comfortable. Your specific needs may be different from the averages, but a typical retired couple shells out a bit over $5,000 per month – a little over $60,000 annually. So how does that compare to you? Well, this Motley Fool article by James Brumley should help answer that question.
Just remember that most retirees say that Social Security represents a “major” part of their retirement income, but Social Security typically provides only about 40% of your average preretirement monthly earnings. So, seeking additional income in retirement, or maximizing your savings before retirement – and choosing your best Social Security claiming option – should definitely be a part of your planning process.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. All questions are answered quickly, at no charge. Learn more about it here…