Can I Afford to Retire?
If you’ve contributed consistently to your retirement plan, you may feel like you’re on the path to enjoying a financially sound retirement. But how do you really know how much money you’ll need to support the retirement lifestyle you desire?
Do the math
Start by using the Account Balance Potential tool to take a hypothetical look at how much your account might grow by the time you retire. You can use this number as a starting point for your plan.
The next step would be to write down your anticipated income and expenses in retirement. You can estimate any gaps you may have in your anticipated income that you may need to plan for now.
Here are a few other tools to help you get started:
- Use the Take-home pay calculator to determine what your income gap may be in retirement
- Use the My Interactive Retirement PlannerSM to set your retirement goals, and use the results to track your progress
- Talk with a Retirement Specialist about your plan and possible ways to improve it
Tips and considerations
- Plan for taxes in advance* – taking a lump sum withdrawal when you reach retirement may mean that you’ll pay more in taxes. You may want to consider systematic withdrawals, to potentially pay less in taxes, and to allow your remaining money to stay invested and possibly grow.
- Plan for the retirement risks – The expenses in your retirement budget should also account for the financial risks associated with retirement, such as outliving your money, healthcare costs and inflation. Increasing your contributions now may be a good way to counter some of these risks.
- Think about your retirement lifestyle – Though it may sound silly, imagining what you want your years in retirement to be like may help you plan for the amount of income you’ll need. Do you plan to travel and enjoy your favorite hobbies? Or, do you hope to live a low-key life, enjoying friends and family? Think about it and develop your plan.
- Take advantage of catch-up contributions – If you’re 50 or older, or are within three years of your plan’s normal retirement age, you can take advantage of catch-up contributions, which allow you to invest even more in your plan to make up for years you may not have contributed enough.
Get the help you need
Talk with one of our Retirement Specialists to develop an investment plan for your retirement goals.
*Neither Nationwide nor its representatives give legal or tax advice. Please contact your tax advisor for more information. Investing involves market risk, including possible loss of the money invested.