How to Tell If You're Still on Track to Retire in 2028
Written by Maurie Backman for The Motley Fool -> Estimate your income needs, and make sure you've got enough savings. Figure out how Social Security fits into the picture. Make sure you're actually retiring to something, not just from something. If you're aiming to retire at
Estimate your income needs, and make sure you've got enough savings.
Make sure you're actually retiring to something, not just from something.
If you're aiming to retire at some point in 2028, you're almost close enough to start a weekly countdown. And that's exciting. But it's also important to make sure your retirement plan still holds up well.
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In recent years, inflation has driven costs up, so it's important to make sure your nest egg can still support the lifestyle you're hoping to maintain. To start, add up your annual expenses, and be sure to account for both discretionary and essential costs.
Keep in mind that once you no longer have to go to work every day, you'll need different ways to stay busy. Some of those might cost money, so be sure to account for them.
Once you have a rough estimate of your annual spending, compare it to your projected annual income from your savings . You don't necessarily need to land on a specific withdrawal rate right now. As a general rule, if you have 25 times your annual estimated spending saved minus what you expect from Social Security, you're in good shape.
So let's say you'll need $100,000 a year to cover your costs and Social Security will pay you $30,000 a year in benefits. That means you need $70,000 from your IRA or 401(k) per year to make up the difference.
