Enjoy Retirement Even if You are not Rich

Did you know that the average person estimates that he will need at least $1 million in order to retire comfortably and happily?

While it certainly would be nice to retire on $1 million (or more), that’s just not feasible for most of us, and if you’re in that “most of us” category, you’ll be glad to know that, even without being rich, you can still retire quite comfortably and happily.   

One of the most important things to remember, as you think about retirement, is that many of the expenses that you have right now will not exist in retirement. Consider, for example, that you won’t have to pay Social Security taxes on most types of pension income, retirement account income, investment income, or the like.

You’ll also, more than likely, have your mortgage paid off when retirement time rolls around, or at least have it mostly paid off, which means you’ll be saving money in that regard as well.

Furthermore, your children will likely be independent and out of the home, meaning you won’t have to “fork over” for their costs, nor will you have the expenses that go along with working, like a work wardrobe, gas for commuting, or other transportation costs.

It’s easy to see that you’ll be spending a lot less in retirement than you currently spend, which means you’ll need less money in retirement…for most people, far, far less than $1 million!

The key to a happy retirement isn’t to have tons and tons of money stashed away. It’s to know what your retirement plans are (for the most part), to know how much you’ll need to realistically finance those plans- keeping in mind that some expenses, as mentioned, will no longer exist- and then saving for what you actually need.

Remember, too, that even if you haven’t quite reached your monetary goal when retirement time comes around, you do have other options for making your retirement happy and for making your retirement dreams “doable,” such as retiring a little bit later to receive a larger benefit or working a small job in retirement or finding a fun way to bring in extra money.

Remember, wealth does not equal a happy retirement, nor is it a necessity. Just plan adequately, preferably with the help of a skilled financial planner, and you should be just fine!