Have you thought much about retirement? Many people think of retirement only in financial terms. However, retirement is an emotional goal as well as a financial one. In fact, it is one of the most emotional transitions you will experience in your life. The earlier you start preparing, the easier it may be to retire in the lifestyle that you choose.
Think of retirement planning as simply a balance between your financial resources and your lifestyle. As a matter of fact, isn't that balance the most difficult one to accomplish in our daily lives? Are we not always trading off, consciously or unconsciously, our todays for our tomorrows? For example, purchasing that larger home with the bigger monthly mortgage payment may mean that a lot less will be set aside for retirement.
Experts generally say you will need 60 percent to 80 percent of your current income each year to get you through retirement. For most of us, the combination of Social Security and CalPERS or other pension benefits won’t total that much. That’s where personal savings comes in. It’s never too early or too late to begin saving for retirement.