WEST COAST CHECKUP - West Coast Dental Association

Retirement Planning 101How Much Do I Need to Save?Many Americans realize the importance of saving forretirement, but knowing exactly how much they need tosave is another issue altogether. One rule of thumb is thatretirees will need approximately 80% of their pre-retirementsalaries to maintain their lifestyles in retirement. However,depending on your own situation that number may be higheror lower. Fortunately, there are several factors that can helpyou work toward a retirement savings goal.LifestyleAnother important consideration is your desired retirementlifestyle. The answers can help you decide what additionalcosts your ideal retirement will require.InflationInflation is a vital component that has the potential to lowerthe value of your savings from year to year, significantlyreducing your purchasing power over time.Retirement AgeThe first factor to consider is the age at which you expect toretire. In reality, many people anticipate that they will retirelater than they actually do.Life ExpectancyYou should take into account your family history—howlong your relatives have lived and diseases that are commonin your family—as well as your own past and present healthissues. Also consider that life spans are becoming longerwith recent medical developments.Future Health-Care NeedsFactoring in higher costs for health care during retirementis vital; these costs could severely dip into your savings andeven result in your filing for bankruptcy if the need for careis prolonged.Social SecurityMany retirees believe that they can rely on their futureSocial Security benefits. However, this may not be true foryou. The Social Security system is under increasing strainas more baby boomers are retiring and fewer workers areavailable to pay their benefits.And the Total Is…After considering all these factors, you should have a betteridea of how much you need to save for retirement. Theimportant thing is to come up with a goal and then developa strategy to help reach it. You don’t want to spend yourretirement years wishing you had planned ahead when youhad the time. The sooner you start saving and investingto reach your goal, the closer you will be to realizing yourretirement dreams.This article was provided by Robert “Bobby” Stark, representative with Pioneer Financial Associates, Inc. He may bereached at www.pfapro.com, 813-653-3343 ext.25 or Bobby.Stark@pfapro.com.Investment Advisor Representative with Securities and Investment Advisory Services offered through Transamerica Financial Advisors, Inc. memberFINRA, SIPC and a Registered Investment Advisor. LD36450-03/108 West Coast District Dental Association • May 2010