The Great Recession has left many older adults reeling, as investments and savings have left some individuals puzzled as to what their next step should be. The Wall Street Journal has recently suggested tips for baby boomers who are planning for a comfortable retirement living.
The first step is to figure out exactly how much income one may need during the golden years.
When thinking about future finances, take into account Social Security, investments, cost of living and the possibility of inflation.
The news source reports that the average retiree receives about $14,000 from Social Security and a couple gets $23,000.
One of the parts of retirement planning that many fail to take into account is an increased life expectancy. The Centers for Disease Control and Prevention now estimate that the average life expectancy for women is 80.6 years and for men it's 75.7 years. It is wise to plan for a few extra years as well.
The Employee Benefit Research Institute (EBRI) suggests that it's never too late to start saving for retirement, which is good news for many older adults who haven't had the chance to set aside funds for the future. The organization estimates that adults age 56 to 62 who save 4.3 percent or more of an annual income each year have around a 90 percent chance of having the same standard of living after retiring.