A Guide to Planning for a Comfortable Retirement

1. Set Clear Retirement Goal

Define the lifestyle you want during retirement, including travel, hobbies, and living arrangements.

2. Estimate Retirement Expense

Calculate your expected monthly expenses, including housing, utilities, food, transportation, healthcare, and leisure activities.

3. Assess Your Current Financial Situation

Evaluate your debts, including mortgages, credit cards, and other loans, and plan to pay them off before retirement.

4. Determine Retirement Income Need

Aim to replace a percentage of your pre-retirement income to maintain your lifestyle. Commonly, 70-80% is suggested.

5. Maximize Retirement Saving

Contribute the maximum allowable amount to your 401(k) and Individual Retirement Accounts (IRAs).