"When baby boomers start to think about retiring, they undoubtedly have more questions than answers, like how much income they will need to maintain their lifestyle or what debt they have right now that they need to pay off before retiring. The good news is that there are plenty of answers to these questions, some more transparent than others. The hope is that by the time the answers to these questions present themselves, they will make the transition to retirement much easier."
"First and foremost, baby boomers must look at their pre-retirement income and decide how much of those monthly expenses will stick around. This includes groceries, travel, hobbies, dining out, entertainment, insurance, and even cell phone bills. All of these things add up, and it will be essential to look at these items one-by-one to see if and where you might be able to cut down on some of your expenses, which in turn helps answer how much income is necessary long-term."
Baby boomers face questions about required retirement income and outstanding debt that must be resolved before retiring. They should compare pre-retirement income to anticipated monthly expenses and identify which costs will continue, including groceries, travel, hobbies, dining out, entertainment, insurance, and cell phone bills. A common guideline suggests needing 70–80% of full-time pre-retirement income to maintain lifestyle, with Social Security covering no more than roughly 40% depending on lifetime earnings. Retirement often requires lifestyle changes such as relocating or downsizing, or reallocating funds toward hobbies and travel, which requires examining and trimming expenses item-by-item.
Read at 24/7 Wall St.
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