Figure Out How Much You Need

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Figure Out How Much You NeedThe first step in creating your retirement readiness checklist is estimating how much retirement income you’ll need before you exit stage left.Several well-known formulas and guidelines attempt to help you figure out how much you need to retire.Two of the most popular are:

• 25x Rule: Take your annual expenses and multiply them by 25.
• 70%-80% Rule: Many experts say you will need about 70% to 80% of your average income during your working years annually to fund your retirement.

While keeping these numbers in mind is nice, creating your own retirement budget will yield the most personalized estimate of your retirement income and expenses.