A carefully followed recipe is key to creating a perfectly delectable pie. If you fail to plan, or measure your ingredients poorly, your pie could be a real flop. The same can be said for financial planning and preparing for your future.
Experts suggest you’ll need at least 70% – 90% of your pre-retirement income to maintain your current lifestyle when you retire. To consider your employer retirement plan as your only source of income in retirement is like baking a pie but only eating one slice. You also need to consider other sources that will make your retirement income pie the winner of the legendary blue-ribbon award.
Follow these simple steps and you’ll be rewarded with a delightful retirement:
- Start with a delicious crust – Your TSERS or ORP benefits are only one of the sources of income for retirement. Your employer retirement plan will provide approximately 45% – 50% of income in your retirement.
- Mix and bake the secret ingredients – While it is not a secret, many forget that Social Security will provide approximately 30% – 40% of an employee’s pre-retirement income. Just drop in some simple information and the SSA “Retirement Estimator” uses past earnings and estimated future earnings to project about how much you’ll get when you retire. You can experiment and drop in different projected future earnings and retirement dates to view future estimates regarding your financial security in retirement.
- Complete with garnish of choice – Other sources of income such as supplemental retirement plans and personal savings (e.g. savings accounts, CDs, IRAs, etc.) should be consider completing your delicious retirement income pie.
When your retirement pie is ready, enjoy it! You deserve a comfortable retirement. If you need more recipes for a long and healthy retirement contact a financial consultant to find the best retirement recipe for your future financial needs.
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