There are many reasons why people in Seneca, SC, choose to retire at a specific age. There are some people who are focused on retiring in their 50s, while other individuals plan on working through to their 60s or 70s.
As Matthew Dixon, a Registered Financial Consultant, understands that choosing a specific time for retirement is a very personal issue. However, some people will not be able to retire according to their plan due to a shortage of savings in their retirement fund.
General Guidelines
One of the guidelines that Matthew Dixon uses is called the 25 Rule or the Multiply by 25 Rule. This is a rough estimate of the amount of savings you will need to retire. The calculation is done by multiplying the average annual living expenses (all expenses included) by 25.
However, this does not take into account any serious health issues that can arise, which can be very costly even with insurance. Many insurance companies estimate the average couple retiring at age 65 will need $295,000 after tax to cover their health costs for life.
Planning for the Bucket List
The vast majority of individuals and couples in Seneca, SC, have a bucket list for after retirement. If this bucket list involves travel or spending time in foreign countries around the world, it will be essential to plan for retirement accordingly.
Talking with Matthew Dixon provides a clear picture of what you want in your retirement. Planning ahead ensures you have the financial means to enjoy your retirement on your own terms.
