Retirement Questions

Why should I plan my retirement?

Because if you don't,  you may not be able to enjoy one, or you find your quality-of-life severely degraded in retirement

How much should I be saving?

From 5% to 10% of your income. More, if you want to retire early.

When should I start saving?

The sooner, the better. Now, if you haven't already started.

When can I retire?

When your retirement fund will support  your retirement plan.

How long will I live?

Probably much longer than the 50% "Life Expectancy" probability.

What retirement income do I need?

Between 50% to 100% of your pre-retirement income, depending on your life-style, and what work-related expenses
will not follow you into retirement.

Will my Social Security retirement benefits be enough?

For many people, especially higher-income earners, relying on SS retirement benefits alone may result in a severely degraded quality-of-life in retirement.

What happens if my retirement fund is exhausted before I die?

If you only have Social Security, you will always have that to fall back on.  If you do not have SS, your quality-of-life will likely be severely degraded in retirement, and you may have to work.  If you can't work, you may be destitute.

How do I know how long I will live?

You don't know for sure, but prudent planning dictates you estimate the 90% to 100% probability of dying for your race and gender.

What if I plan to retire on a US military pension?

Your US Military retirement plan will be inflation-adjusted, but if your years of service will result in a pension below your desired
 quality-of-life expectations, you probably will want  to supplement it with a private retirement plan 

What if I plan to retire on the US Civil Service Retirement System (CSRS)?

CSRS provides most government workers with an adequate, inflation-adjusted income.  But if you retire early, the penalties may results in a pension below your quality-of-life expectations, and you may want a supplemental private retirement plan 

What if I plan to retire on the US Federal Employees Retirement System (FERS)?

FERS combines Social Security with a thrift savings plan. The Social Security portion is inflation-adjusted, but income from the thrift savings is not.  It is highly recommended that you supplement FERS with a private retirement plan 

How can I maximize my retirement account during my savings years?

Generally, you must invest your savings in financial instruments that yield a net return-on-investment  (ROI) that is much higher than the rate of inflation. 

Why do I need to worry about inflation?

Inflation reduces the purchasing power of your retirement fund every year, so each dollar in it it buys less and less. 

What is an inflation-adjusted retirement plan

An inflation-adjusted retirement plan adjusts your retirement pay-out each year so that your quality-of-life remains fairly constant throughout your retirement years.