I've tried lots of retirement income planners and one that I really like is the Fidelity Investments Retirement Income Planner. This is not a planner for someone who just wants a rough idea of how much money they need to save. This planner is for someone who is serious about figuring out what they'll need and where they stand (although you can bypass the detailed worksheets and get the rough estimate if you prefer).
Expenses in retirement
Many retirees can live well on less than what the financial-planning industry tells them. Here's how to look beyond the formulas.
Expensive illnesses, long-term care and extreme longevity can suddenly throw retirees' estimated income needs out of whack. When the Society of Actuaries interviewed middle-class retirees in focus groups earlier this year, "they were managing very carefully, adjusting their spending where they needed to and trying not to draw down" their savings, Ms. Levering says. "But they were not planning for shock events."
How much can you afford to spend in retirement? The answer is getting a little more complicated.
The only hard-and-fast rule for how much retirement income you will need is that there is no hard-and-fast rule. The financial industry's typical rule of thumb—which states that retirees need to save enough to be able to replace 75% to 85% of their preretirement income every year after they stop working—isn't really useful for many people. New research shows that many retirees can live well on less than that but others rack up higher expenses through travel, expensive hobbies or medical costs that can't be avoided.
Fidelity’s latest research reveals many Americans are behind on retirement preparedness, with 55 percent in fair or poor condition. The report also provides a list of six ways to accelerate savings to catch up and be better prepared.
Retirement today is not the same as it was for our parent’s generation. The generation today does not want to fade away into woodwork. They want to live a full life after retirement. They want to maintain an active lifestyle and not be dependent on their children. Hence retirement planning takes on a very important role...
Most of us look forward to retirement as a time to shift gears, worry less, and enjoy a slower pace of life. But that rosy picture can quickly change and include some sticker shock as retirement nears, especially when it comes to paying for health care. A couple retiring in 2013 is expected to need $220,000 to cover health care cost in retirement.