Projecting your financial status for retirement
If a person is within 5 years of his/her retirement,they can easily make a satisfactory projection that what will be yourretirement financial status. This status actually stands for the way that howyour income of retirement compares to the retirement expenses. You actuallyneed to know it better so that you can take some quick steps to rectify if it is in a bad shape. Get a 2019 medicare supplement plan to stay healthy.
Projecting your retirement income:
1. Social security income
2. Pension income
3. Working during the time of retirement
4. Income from your savings
Before starting with the retirement time work, see what you have made from other three types:
One gets a goodincome from social security plan and pension income. Ask your relevant companyto give you an estimate of your pension income. They proceed by calculatingsocial security income through their websites. This is easier to get the rightestimation or just refer to your annual social security summery that mailed toyou by the company. Now, this is time to calculate your savings. In your calculation,include the saving from a non-pensionqualified plan and any type of investment you have. You need to project how much it will worth when you retire. You can take 4% of the value as annual income that your savings cangenerate during retirement.
Ways to project the retirement finances
- You should have your savings at low risk or the conservative investment if you have just a few years to retire. That way it will be easier to count the total amount when you need them.
- To estimate the right amount of your savings, take 5% of the current value of it and multiply 5% by the years of retirement (numbers, like 5 years). You will get a specific value and add that to the total value. Now add your yearly contributions to the savings that you are going to make each year. It can give you a rough estimate that how much savings you are allowed to withdraw as the beginning of your retirement. You can restrict your rate of annual withdrawal up to 4% if you don’t want to deplete the savings at retirement.
- Now add the three types of income sources during retirements like social security, savings income and pension. It will give you a complete estimation of your projected retirement income each year even if you don’t have any work during retirement time.