Retirement is one of the most critical phases of your career as well as your life. When one is planning for retirement, their focus is on their current savings and potential investments that can help them lead a comfortable and financially independent life when they get old. Such preparation involves a common question, “how much to save for retirement?” And although it might seem a bit daunting, you can efficiently manage your funds by conducting assessments of current expenditure, savings, and implement a robust planning. It’s all about understanding the basics of smart saving, minimizing debt and working on a financial plan.

How much to save for retirement is again subject to one’s attitude towards future savings and the anticipated lifestyle after retiring. A realistic calculation of expenses associated with retirement is a simple solution to the issue. The present expense is a perfect answer to the crux of the matter and by which one can estimate the permanent and variable factors. Given the fact that most citizens don’t save much, social security becomes the final source of income. And further to this, there is a huge disparity when it comes to retirement savings between the rich and lower-income individuals. The bottom line is again about the attitude towards future rewards and the saving habit which is considered as tough by many.

The how’s of retirement saving are very judicious and needs a fundamental calculation based on your current expenses. Judging by individual current needs, one does not need to save a lot, yet sufficient enough to bear the minimal requirements. It is imperative to work for at least half a lifetime for the basic savings. This drills down to understanding your investment choices and current expenditure. And with the advent of technology and internet, there are several retirement calculators available in the market for financial planning. To keep it simple and straight, one needs basic figures to calculate amount required to retire, individual retirement saving targe, individual retirement saving schedule to withdraw on a monthly and planned withdrawal amount to estimate the retirement savings longevity. In addition to this, one even needs to keep inflation and market trends in mind while investing and planning. It’s a mistake to assume that inflation accumulates little by little over a period and this can have a profound impact on your retirement savings. Social security is for certain, but for the rainy days in retirement, one needs to save smartly. Now that retirement savings is for sure, what are the options available? Since it is not a single lookout but a combination of several incomes, listed below are some of the options available for retirement planning:

• Pensions: The easiest and structured source of income
• Defined Contribution Plans: 403b and 401k considered to be the best retirement deal with an automated debit of individual paycheck
• Roth IRAs: Highly recommended for young savers towards retirement
• Traditional IRAs: Not subject to income restrictions and no impact of capital gains tax
• SEP IRAs: Ideal for self-employed
• Nonqualified Deferred Contribution Plans: For the ones who don’t benefit from defined contribution plans or IRAs
• Guaranteed Income Annuities: These insurance products provide a guaranteed income as when one retires
• Cash-Value Life Insurance Plan: One pays for a policy that creates cash value
• Social Security: The most critical takeaway in retirement
• Real Estate

In general, experts state that one needs at least 70% to 80% of pre-retirement income to sustain future expenditures and maintain current lifestyle. This is again subjective, and all depends on careful planning of current income. Again one can keep investing small amounts on a regular basis in several financial funds as a form of retirement planning. Say you get a bonus and make the best use by depositing to catch up on additional savings. It’s a bonus for a bonus! Paying off debts and loans in the right time is very crucial to your retirement plans. It’s a key to the golden times during your retirement.

Essentially create your own means to live a comfortable life during the high and low days of your retirement by boosting your income and wealth saving plans. In a nutshell, understand what the requirement is and what investment options you can make the best of.