How much money will you need to have for the retirement you see for yourself? Where will it come from? The recent rocky economy, talk of Social Security reform, and a few high-profile pension fund failures have many Americans thinking more seriously about how they will fund their retirement. For years, financial planners have talked about retirement income as a "three-legged stool" that stands on Social Security, employer-related pension or retirement plans, and personal savings. Because they are healthy and active, more retirees are adding a fourth leg to that stool—part-time work.
Financial planning for retirement is about having a plan for your money. It basically comes down to five questions:
The following sections take a brief look at questions 2 and 4. There are numerous sites on the Internet that offer myriads of planning tools such as savings calculators, online advice providers and planning software.
Experts recommend the following:
Just remember that the output of a calculator or other interactive tool is only as good as the information that you put into it.