Do you really need a million dollars to retire? | Personal finance
This is only a guideline, however, and your savings needs may differ. If you plan to move to another city after you retire, for example, it could drastically affect your future spending. Or if you plan on traveling frequently or picking up expensive new hobbies in retirement, you could end up spending even more than you do today.
It’s also important to factor in the little fun expenses you might face in retirement, such as healthcare and long-term care. Even if you are eligible for Medicare, you will still have to incur at least some personal expenses. While you may not be able to predict exactly how much you’ll be spending, it’s important to at least factor these costs into account when budgeting for retirement.
How much do you need to save for retirement?
The good news is that most retirees are eligible for Social Security benefits, so you may not need to save as much as you think. That said, the average retiree only gets about $ 1,500 a month in benefits, so you may not be able to survive on Social Security alone.
To check the estimated amount of your benefits, you can create a mySocialSecurity account to view your statements. Here you will be able to see the amount of your future benefits based on your actual salary throughout your career. Keep in mind, however, that if you apply for Social Security early, you will receive a reduced benefit amount.