Brian Gibbs has served as president and chief executive officer of Heritage Retirement Advisors, Inc., in San Diego, California, since 2005. An accomplished retirement planner and financial consultant, Brian Gibbs provides a range of services to clients throughout the San Diego region, including retirement income planning.
The ideal figure for retirement income will vary from one person to the next, and can be influenced by a myriad of factors. That said, most financial experts agree that a household’s retirement income should be at least 80 percent of pre-retirement income. This figure can be augmented by numerous sources of income, including Social Security or part-time employment during retirement. Meanwhile, other factors, such as a family’s desired retirement lifestyle, might increase that number.
One cannot plan out alternative sources of income before identifying a primary source of retirement income, which is typically their savings. To reconcile a retirement “nest egg” with the requisite annual post-retirement income, individuals can use the 4 percent rule. For example, a person making $100,000 per year while working will need to earn about $80,000 per year after retiring (80 percent). By dividing $80,000 by 4 percent, this person can see that they will need a nest egg of about $2 million in order to retire.
Of course, retirement income and retirement savings vary significantly from one household to the next. For a more in-depth look at your financial future following retirement, please reach out to a financial consultant with experience in areas of retirement planning.
The ideal figure for retirement income will vary from one person to the next, and can be influenced by a myriad of factors. That said, most financial experts agree that a household’s retirement income should be at least 80 percent of pre-retirement income. This figure can be augmented by numerous sources of income, including Social Security or part-time employment during retirement. Meanwhile, other factors, such as a family’s desired retirement lifestyle, might increase that number.
One cannot plan out alternative sources of income before identifying a primary source of retirement income, which is typically their savings. To reconcile a retirement “nest egg” with the requisite annual post-retirement income, individuals can use the 4 percent rule. For example, a person making $100,000 per year while working will need to earn about $80,000 per year after retiring (80 percent). By dividing $80,000 by 4 percent, this person can see that they will need a nest egg of about $2 million in order to retire.
Of course, retirement income and retirement savings vary significantly from one household to the next. For a more in-depth look at your financial future following retirement, please reach out to a financial consultant with experience in areas of retirement planning.
