Title: Planning for Retirement: How Much Do You Really Need to Save?
Subtitle: CNBC offers insight into the savings required to maintain your desired lifestyle during retirement
Date: [Insert Date]
As the thought of funding your retirement looms, the key to ensuring a comfortable future is to start planning early. Despite the initial intimidation, retirement planning can be less daunting and more achievable than you think.
Retirement entails replacing your annual workplace salary with alternative income sources that allow you to maintain your current lifestyle. While Social Security may cover a portion of your budget, concerns may arise regarding the amount you will receive from Social Security once you retire. Therefore, it is crucial to rely on your savings and investments for the rest of your income.
To provide some clarity, CNBC has conducted an analysis to determine the amount you need to save now in order to secure $80,000, $90,000, or $100,000 annually during retirement, without depleting your principal.
There are some fundamental guidelines to consider. The calculations assume that you will retire at age 65 and currently have no savings. Financial advisors typically recommend gradually shifting your investment portfolio to a more conservative mix as you approach retirement. However, even during retirement, a balance of stocks, bonds, and cash is advisable. The analysis assumes a conservative annual return of 6% during your working years and a more conservative 3% during your “interest-only” retirement phase.
It is important to note that the calculations do not account for inflation, taxes, or any additional income from Social Security or a 401(k) investment plan.
For a comprehensive breakdown of how much you need to save now to achieve your desired annual retirement income of $80,000, $90,000, or $100,000, CNBC provides an informative video to guide you through the process.
Remember, it is never too early to start planning for retirement. Take control of your financial future and pave the way for a worry-free retirement by making informed decisions today.
Watch the video above to gain further insights into securing your desired retirement income.