You gaze into the crystal ball hoping for answers about your retirement future! But it’s asking you questions! “When will you retire?” “How much money will you need when you retire?” “How much money have you saved for retirement?”
Don’t panic! The “Retirement Planner,” located on University of Illinois Extension’s Plan Well, Retire Well: Your how-to guide website (www.RetireWell.uiuc.edu), can help you with your plans. This interactive worksheet will help you estimate your retirement income and the savings required to produce that income.
When you begin the planning process, it is necessary to make some assumptions to guide you in projecting what your retirement will be like. You will want to identify your retirement goals/lifestyles, a reasonable rate of inflation, the rate of return on your investment. Think about where and how your money is invested, tax implications, sources of retirement income and your life expectancy. The questions may be difficult and you’ll wish the crystal ball would just give you the answers. However, by answering the tough questions, you will discover exactly what you need to be working toward.
Look for things you can do now, before you retire, to enhance your retirement. Can you increase your savings, invest more aggressively, cut expenses, pay down or off debt, add extra income or maximize tax-deferral opportunities? You may decide not to retire for a few more years or plan to spend your retirement time differently. Now is the time to start thinking about your retirement regardless of whether you’ve just started your first job or are just a few months from retirement. The University of Illinois Extension’s Plan Well, Retire Well: Your how-to guide website (www.RetireWell.uiuc.edu) is an excellent resource to help you with your retirement planning. It’s better than a crystal ball!
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Source: Mary Ann Fugate, Extension Educator Consumer and Family Economics
Champaign Extension Center
University of Illinois
(217-333-4901)
Edited by: Lois Smith (618-692-9434)
