How much retirement income will you need?

How much retirement income will you need?

filling form-min

One of the most important things you need to determine when saving for retirement is how much money you will need to live on when you retire.

Half a lifetime ago, my friends and I all seemed to be struggling with the question: “Is this the right career for me?”

These days, for people of my vintage, the questions have changed. Now, I often hear: How much money is enough to retire on? How long does my money need to last?

The 4% rule
You may have heard of the “4% rule,” a rough guide for making your retirement income last for 30 years by drawing down only 4% of your savings each year. There’s controversy about whether it will work in the future: The rule was developed in an era of higher interest rates, when you could expect higher returns from the fixed-income portion of your portfolio, and it doesn’t allow for different income needs at different stages of your retirement. Even right now, I can tell you two of its shortcomings:

To continue reading more on this article provided by SunLife Financial, CLICK HERE. As always please contact Harry or David if you have any questions.