Retirement And The Economy

Whether you are approaching retirement age or find yourself anywhere else within the spectrum of your adult life the economic realities of today are a topic to be conern about.

The economic conditions during the past four years have left the majority of Americans wondering how to survive once we reach retirement. The first step in being able to retire is planning. It is important to include as an everyday item budgeting for retirement. It is equally important to enlist the help of a professional. Everyone's situation and goals are different so you need a plan tailored to maximize your income. The worse the overall economy is, the more planning will be required. Reality is showing us that we may not have social security and medicare as a parachute in our golden years to fall back on. It is important to take personal responsability and not count on the government.

According to most investment firms you will need 75% of your pre-retirement income to live comfortably when you retire. While setting your goals the following are items to be consider:

1. Life expectancy
The state of your health and arranging sufficient insurance will play a key role with this item.

2. Future income needs
If your dwelling is paid off a large portion of expenses will be reduced.

3. Retirement date
How long you plan on working will decide the acceleration of your plan.

4. Inflation rate
Our economy has cycles. How steep we forsee those cycle to be will account for adjustments needed in our planning.

5. Investment rate
This item is greatly influence by the economy. Periodical adjustments will be needed.

6. Withdrawal rate
Calculating our future expenses and setting a realistic vision of our retirement lifestyle will dictate the degree of this item.

It does not matter whether you are beginning or close to retire. Start your planning as soon as possible and you will have a true golden age.