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How Much Do You Need for Retirement?

Generally, people in retirement spend 70% to 80% of what they spent while they were employed. So, if you spend $2,000 a month now, you'll probably spend about $1,400 to $1,600 a month when you're retired.  Although Social Security pays a portion of your expenses during your retirement period, you may need more depending on your situation.  Remember that healthcare expenses tend to be higher during your retirement years.  Below are three questions to help you outline how much you should save for
  • How long will your retirement last?
    The Social Security Administration estimates that the average 65-year-old can expect to live 17 ½ years beyond retirement.  So, depending on whether you retire early or late, you should adjust the amount of money you save to last you beyond Social Security payments.  Learn more about Social Security and senior benefits from the NYC Department for the Aging

  • Do you plan to work part-time as long as you can?
    If you are healthy and believe you can work part-time well beyond your retirement age, you may not need to save as much for retirement since you'll continue to draw an income.

  • What type of retirement do you envision?
    Think about the lifestyle you want when you're retired.  Do you plan on traveling every year?  If yes, factor that into a higher savings goal.

Remember that unexpected emergencies can come up at any age, so it is always a 
   good idea to have extra money tucked away in an emergency fund
Learn about different retirement savings accounts
Need help developing a retirement savings plan? Find a financial counselor