The example provided above is an over-simplistic view of a retirement analysis. A realistic retirement analysis would take more factors into consideration so as to ensure that any projections are as realistic as reasonably possible. The following are some of the factors that are usually included in a comprehensive retirement analysis:
- Your current age
- Your planned age of retirement
- Your current and projected income
- Your current and projected expenses
- Your current income tax rate and future income tax rate
- The amount you can afford to add to your retirement nest egg now and for the rest of your income earning years
- An assumed rate of return
- Projected inflation
- The various sources from which you might receive retirement income and whether those amounts would be fixed or varying
- Your planned retirement lifestyle, including where you plan to live during retirement
- The types of saving accounts and the tax status of those accounts
- Your health history and that of your family, so as to determine your need for health insurance and the different types of health-related coverage that you may need
Retirement Planning For 20-Somethings: Saving Options
TradingThe countdown is on. Find out whether you'll be ready to leave the working world.
RetirementWe'll show you how to set yourself up to retire in style.
Financial AdvisorAccumulating a nest egg is the first step in effective retirement planning. The second is making sure you have enough income after retiring.
RetirementKeep these points in mind as you calculate your retirement asset goal.
Financial AdvisorFeeling ready for retiring? Before you make the jump, ask yourselves these questions.
RetirementFind ways to save money and increase your nest egg for the fast-approaching golden years.
Financial AdvisorIf you're within 10 years of retiring, you and your financial planner should heed these essential tips.
RetirementEarly retirement doesn't have to just be a pipe dream if you've got a plan for making it happen.
RetirementThese considerations will help you make a realistic and thorough retirement plan.
RetirementAs you approach retirement age, there are a number of factors to consider before deciding on when you want to retire. Here are six signs to look at.