This topic has become top of mind in the last few years. It is evident that most people are not putting enough away for retirement.
Living on less
Many financial planners will tell you that, in retirement, you’ll want roughly 80% of your pre-retirement income. But surveys indicate that today’s retirees are bringing in far less than that — about 66% of their pre-retirement income on average. Here’s where that money is coming from.
The bottom line is that all of us likely have a greater capacity to adapt and make retirement more enjoyable than we assume during our working years. That doesn’t mean we shouldn’t focus on saving for retirement, which obviously remains vital.
Instead, for those who are decades away from retirement, it is a better way of looking at this and ask how to apply it to your daily life right now. What types of wasteful spending could you eliminate from your life? What is your level of “enough”? If you were to eliminate all of your expenses and then only add back things that add value, what would you be left with?
The answers to these questions are equal parts philosophical and practical. The main goal is to help you live a more mindful life. But the key, as far as this article is concerned, is that answering these questions can help you save far more for retirement (and require less once you enter it).
Either way, this will help you avoid the anxieties brought on by retirement calculators and focus on living a more sustainable life both now and in retirement.