There is no magic number.
The better question is: Where will my retirement income come from, and what happens if one source isn't enough?
Where will my retirement income come from, and what happens if one source isn't enough?
Build Your Retirement Income Map
Potential sources might include:
- Social Security
- Pension or employer retirement benefits
- 401(k), 403(b) or similar accounts
- IRAs
- Personal savings
- Investments
- Business or rental income
- Part-time employment
- Appropriately structured annuity or insurance solutions where suitable
Not everyone will have every source. That's the point. Know which ones you are actually counting on.
Ask What Each Source Is Supposed to Do
Some money may be intended for predictable monthly expenses.
Some may be reserved for emergencies.
Some may be invested for longer-term growth.
Some sources may provide income for life while others can eventually be depleted.
Some may be affected by markets, taxes, inflation, withdrawal decisions or other factors.
Try This Exercise
Write down each income source you expect to have, the expected monthly income from each, and then compare that total with your expected retirement expenses.
Suddenly, "retirement" becomes something you can actually see.
Questions Worth Asking
- What income sources will I have?
- When can each begin?
- How long could each last?
- Which expenses must be covered every month?
- Which income is guaranteed and which is not?
- How could taxes affect what I actually keep?
- What happens if I live much longer than expected?
GEMACE Perspective
Retirement isn't simply about reaching a certain account balance.
Eventually the question becomes: How does everything I've accumulated turn into income I can actually live on?
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
How Does This Fit Into Your Life?
GEMACE LifeMap™ begins with your family, responsibilities, goals, concerns and what you're already counting on before discussing possible solutions.
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
Educational Information
This material is provided for general educational purposes only and is not intended as individualized insurance, financial, investment, tax or legal advice. Individual circumstances vary. Insurance products, features, availability, eligibility, costs and policy provisions vary by insurer, product and applicant. Review actual policy documents and consult appropriately licensed or qualified professionals regarding your individual circumstances.