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Retirement Needs

Calculate how much money you’ll need

Whether retirement is an impending reality or a dream that’s years away, proper planning can help make the transition and life beyond it easier.Consider these factors that could throw a wrench in your retirement plans:

1. Unexpected health problem - The longer you live, the greater your chances of experiencing a health issue. An unexpected illness or disability could force you to retire early and/or lead to expensive medical treatment or long-term care your retirement funds can’t sustain.
    
2. Change in marital status - When you lose a spouse to death or divorce (before or during retirement) you may eliminate an essential second paycheck or lose retirement income sources you’ve been counting on. You may also have to start paying for certain services your spouse would normally perform, such as home repairs, housekeeping or child care.
    
3. Loss of employment - Perhaps you’re putting the majority of your retirement eggs in your current employer’s basket – in a company pension, a 401(k) or another savings plan. What if you lose your job? Are you fully vested? Will your retirement funds transfer to another plan?
    
4. Early retirement - Retirement benefits you receive from your employer could be lowered if you retire before a specified date. You may face early distribution penalties and other tax issues. Social Security may not kick in yet. And you have that many fewer years to accumulate funds.
    
5. Underestimation of how much you’ll need -  Your cost of living may not go down in retirement, especially if you have extensive traveling, a new home or expensive hobbies in your plans. The average life expectancy continues to rise, and inflation is a big factor to consider. You need to ensure you won’t outlive your funds.
    
6. Poor distribution decisions - With the decline in employer-sponsored pension plans, you have more decisions to make about your retirement future than your parents or grandparents did. What you do with your personal savings during retirement is just as important as when you were saving up. 
    
7. Outdated plan - Whether the big day is decades away or the countdown has already begun, it’s a good idea to review your retirement plan regularly. Even the best plan can’t account for every change life throws at you.