How much do I need to retire?
A secure retirement is based on factors unique to each person–expenses, savings, investments, healthcare, and taxes. But how do you know when you have enough?
There are many recommendations of generally how much someone should set aside before retiring, such as 10 times your net take-home pay, or 80% to 90% of your annual pre-retirement income. As healthcare costs and lifespans continue to increase, saving and investing as much as possible will be necessary, but even that might not be sufficient. Almost 40 percent of surveyed retired workers over 65 rejoin the workforce after retirement† (Maestas et al, 2019).
What to Consider for Your Retirement
This is where your Huntington Financial Advisor can help by developing a profile of your age, assets and likely expenses in retirement.
They'll take into account potential income sources and assets such as:
- Social Security
- Assets, such as a home, property, a business
- Health Savings Account
- Personal Savings and investments
- Individual Retirement Accounts, such as a 401(k)
- Defined contribution/benefit plans
- Pension
- Continued employment
Learn more about retirement savings by age and if you're on track.
Retirement Planning with Huntington
Here are two pages that offer additional important guidance:
Expenses in Retirement
Some expenses after retirement can be accurately estimated and controlled, such as housing, food, and entertainment. Healthcare and long-term care costs will be significant and likely continue to increase.
The following is a list of post-retirement expenses to prioritize and consider:
- Housing
- Clothing
- Transportation
- Medicare premiums
- Healthcare
- Taxes
- Food
- Emergencies
- Entertainment
- Travel
- Grandchildren
- Leaving a legacy
Healthcare and Longevity are Key Factors
Healthcare can be the least predictable and a costly expense in retirement, so the amount you'll need will depend on when and where you retire and of course, your health. Retiring at 65 or older when Medicare is typically available may be wise because according to Fidelity, an average retired couple age 65 in 2022 may need approximately $315,000 saved (after tax) to cover health care expenses in retirement.§ (Fidelity 2022).
How long you live is another obvious factor in determining your retirement security, especially since retirement can last 30+ years. Consider the following (‡LaPonsie, 2020):
- A 65-year-old can expect to live another 19 to 21.5 years
- A third of those over 65 live to celebrate their 90th birthday
- 1 in 7 will live beyond the age of 95
Check out all our retirement savings calculators that help you navigate how much you need to retire and how to help stay on track even after retirement.
For 35 years, Huntington Financial Advisors have been providing prompt, personal service to clients like you for moments that matter. We offer meaningful advice and can create a plan that is designed to focus on your key priorities to help achieve your goals. Call Huntington's Advisory Resource Group at 800-530-1690 to learn more or use Advisor Connect to find an advisor who's a good match for your unique position.
Get Started with Advisor Connect
† Maestas, Nicole, Kathleen J. Mullen, David Powell, Till von Wachter, and Jeffrey B. Wenger. 2019 "The American Working Conditions Survey Finds That Nearly Half of Retirees Would Return to Work." RAND Corporation.
‡ LaPonsie, Maryalene. April 22, 2020. "How Living Longer Will Impact Your Retirement." U.S. News & World Report.
§ Fidelity Brokerage Services. (Aug. 29, 2022). How to plan for rising health care costs. Retrieved Feb. 23, 2022.
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