1. Estimate Retirement Expenses
If you’re at the younger end of the boomer generation, retirement calculators can estimate how much you need to save for retirement, but these calculators only consider half the picture. To thoroughly prepare for this time in life, you need to remove the guesswork and understand your real spending needs, said Rob Williams, director of income planning for Charles Schwab.
“Begin thinking about when you want to retire, where you want to live and what you want to do,” Williams said. “Will you travel or work part-time, or move to a different city? Once you know your vision, you can determine how much your retirement is going to cost and how you are going to pay for it.”
To begin planning, consider whether you’ll remain in your current home or downsize to a cheaper, smaller place. Also consider whether you’ll move to an area with a lower cost of living. These factors affect how much you’ll need, and how far you’re able to stretch your retirement dollars.
