Retirement Planning
Retirement Funds Needed?
Retirement math isn’t scary — avoiding it is. The amount you’ll need depends on your lifestyle, your expenses, and your reliable income sources. Here’s a simple framework Fiscal Investors use to get a real number (and a real plan).
5 Steps to Estimate What You Need
- Estimate your retirement expenses. Start with today’s spending and adjust for what changes in retirement: housing, transportation, healthcare, and the fun stuff (travel, hobbies, grandkids).
- Calculate your retirement income. Add up expected income sources like Social Security, pensions, and withdrawals from retirement accounts. The goal is to know what’s reliable — not what’s “hopefully.”
- Determine your savings gap. Your gap is simply: expenses minus income. A common rule of thumb is replacing 70–80% of pre-retirement income, but the right number is personal.
- Factor in inflation. Inflation quietly raises the cost of everything over time. Planning for inflation helps protect your future lifestyle so your savings keep their purchasing power.
- Stress test your plan. What if markets are choppy early in retirement? What if healthcare costs spike? A great plan isn’t “perfect” — it’s resilient.
Fiscal Investor reminder: You don’t need a perfect forecast — you need a repeatable process.
Start with a baseline, automate contributions, and improve the plan as your income and life evolve.
These are general guidelines. For a personalized strategy (taxes, withdrawal order, Social Security timing, and risk level), consider working with a qualified professional.