Right… like you want to be thinking about this…

But I will tell you how I started to have a new interest in “saving for retirement”. I have friends (a couple) who did not plan for retirement. At all. They had no savings. And now, about 5 years in, they are in a bad spot. They get (combined) about $1,400 from social security, and that’s what they live on each month. That is uncomfortable, and gets more uncomfortable as they get older.

The good news is that they have something. What they get from social security keeps them from being homeless, and keeps them just above the poverty line for a couple. But when you consider how much it costs to rent a decent apartment, do something about transportation, deal with food, utilities, medicine, doctor’s visits, etc., this is not a great situation by any means.

Bottom line – if you want to be doing fun stuff like cruises and foreign travel in retirement, and if you want to be living in a place unlike a slum, the time to think about it is now.

So, how much money do you need? It’s complicated to figure out for yourself, but fortunately there are calculators, as reviewed here:

Retirement Calculator Report Card: Are You Saving Enough?

The one they rate most highly is also the simplest one. In about 5 minutes you will have a number, and then you can easily play around with things to look at different scenarios:

Retirement Income Calculator from T. Rowe Price

See also:

See also:
- How 401 k Plans Work
- 10 Tips for Retirement Savings
- The 12 Dumbest 401(k) Mistakes

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