When Can You Retire?

Your lifestyle during your retirement years is based on the streams of income that you have flowing in every month.  In the past, your retirement income was comprised of a three legged stool. The first leg was a company pension, which was a lifetime income source and if you passed away, part of your pension would be passed to your spouse and last for his or her lifetime. The second leg of the stool was Social Security, and was also a lifetime income source. The third leg was your personal savings, and in the past you would set up a balanced portfolio, where you would typically put half your money in stocks and the other half in bonds and draw a 4% income.

However, saving for retirement today is not as easy.  For most people, the pension leg is gone and has been replaced with 401k plans.  If you do have a pension, you may be worried that it won’t keep up with cost of living increases and you more than likely have been offered a cash lump sum option to take the money, no longer making it a lifetime income source. In addition, while Social Security is still available, it does not keep up with inflation increases and you may be concerned about the stability and whether it will still be around when you retire. Lastly, your personal savings requires you to do most of the work and you can no longer count on pulling 4% anymore, as research shows you have a 50% chance of running out of money before you die, so they recommend pulling only 3%. 
Saving for retirement is a lot more difficult than it ever used to be and you may be wondering, how should you structure your retirement savings to last a lifetime and to generate enough income so that you can live your desired lifestyle?  Tune into Redefining Retirement this Sunday at 5:30 p.m. on Channel 2 News where we will share how to determine when you can retire and how to do it properly. 
Cornerstone Retirement Group