And that means having a target for how much you need to save in order to have the retirement you want…but your number may very well be off.
Yet the major culprit in this entire issue might surprise you. Here’s why you may need to start adjusting your retirement savings goal…
What do you directly correlate with your retirement? It’s probably something to do with the amount of cash you’d like to have saved up, right? You’re not wrong to think that way, but there’s another aspect of retirement to think about…
I’m talking about your retirement spending.
This is a secondary thought for most people who figure that spending, “is what it is,” to put it simply.
Yet there are a few reasons why you may want to recalculate your retirement spending, and thus your retirement savings.
For starters, the healthcare costs projections point toward retirees spending more and more in the future. Some new data regarding this sort of spending shows healthcare costs accounting for approximately 13% of spending for people 65 and older.
This same data, coming from HealthView Services, projects healthcare costs to rise about 6% annually over the next 10 years, which is a drastic increase over the normally presumed rise with inflation of about 2.5% to 3% per year.
So now after falling from 2012 to 2014, the projected savings target has been rising, according to a study from the Employment Benefit Research Institute.
I’m not saying this to make you feel uneasy or anxious. Actually it’s quite the opposite – I want you to be able to prepare properly for your retirement in order to live comfortably and happily.
The other reason I’m telling you this now is because you need to start planning for this right now. Every day you put it off is a day wasted and a day lost. Don’t let that be one of the days you want back when you’re well into retirement.