“Do I have enough to retire?”
Depending on your circumstances, your SUM180 Plan may not have gotten into whether you have enough to retire, or whether you WILL have enough to retire when you choose to do so in the future.
That is because we at SUM180 believe that we should help you focus on the next few steps you need to take in your own journey to feel confident of your financial picture, wherever you are. We do not automatically “skip ahead” to where you stand on retirement like practically all other services do.
Having said that, if you want to explore where you are relative to future retirement, below we outline how to use the data you entered in your interview to determine that. You can easily access that data by opening up your Interview in the My Data section of the SUM180 Dashboard.
Fair warning, this will be like one of those “story problems” from your childhood that you either loved or hated. If you hate story problems, just stay focused on your next steps and over time you will get where you need to be. If you are taking out a fresh piece of paper right now, excited about this story problem, have at it.
Everyone’s circumstances are different, of course. Obviously, we don’t know your specific plans for the standard of living you want to have in retirement. However, experience has taught us that people naturally scale back a bit in retirement. A rule of thumb is that retirement expenses will be 80% of your current expenses. You can see that you can easily increase or decrease that percentage to explore your own situation. I write more about this in my post Your Retirement Will Look A Lot Like Your Life Before Retirement.
As you work through this, you will see that other sources of income, besides Social Security, make a big contribution to your financial picture during retirement, and reduce the required size of an investment portfolio needed to support your retirement living expenses. Every bit of income helps.