With so many Americans lagging behind on retirement savings, it’s high time workers had a blueprint for retirement that, if followed, will lead to a golden time in one’s golden years. There’s a good reason why. According to a recent study by the Employee Benefit Research Institute, only 18% of Americans are very confident they’ll have the income needed for a comfortable retirement. Let’s stop that negative sentiment with this blueprint, including ten specific financial steps to take to guarantee a great retirement – as long as you stick to the plan.
Know How Much Money You’ll Need For Retirement
For starters, having a financial goal in mind is a great place for retirement savers to start. While every saver’s situation is unique, A 2014 study by the Bureau of Labor Statistics found a household aged 64 to 74 will need an approximate average of $44,680 to live annually. “The rule of thumb can be based on requiring 80% to 100% of the final working year’s salary,” says Barbara Delaney, founder of StoneStreet Advisor Group. “Social Security may only cover 20%-to-30% of retirement funding, so the shortfall will need to be made up with other funding such as 401(k)s & Roth IRAs.”