Retirement planning must be considered many years before it is time for you to retire. Typically, the better your foresight, the better it is to plan efficiently for your retirement. However, there is no magic number to arrive at, which is why it helps to know what you’ll be spending your hard-earned savings on.
Let’s explore the best steps laid out by William Schantz for efficient retirement planning.
William Schantz’s Estimates for How Much Retirement Savings You’ll Need
Everyone has different expenses, wants, and needs for their retirement. For example, you may have saved up just enough to live by yourself with minimum costs, which does not require a high number. However, most people find that $1 million in retirement savings is enough to sustain them for over two decades, which is the average life expectancy after retirement. William Schantz also recommends the 80% rule, which involves saving 80% of your income for a retirement period of 20 years. This is about $1.6 million and is a reasonably high amount and goal achievable only by high-income earners.
In most cases, retirees cannot save even close to a million dollars, making it necessary to cut down on their expenses and limit their lifestyle requirements.
William Schantz’s Steps for Retirement Planning
If you’re worried about the right retirement planning strategies, you should know that there are a few key steps to follow that apply to most people. Let’s explore them briefly.
1. William Schantz Recommends Developing a Proper Plan
Developing a retirement plan must occur many years before retiring. For example, if you’ve just started working at 22 years of age, you may begin to start saving up for your retirement by the time you turn 25 and determine the age at which you wish to retire and how much money you’ll need. You should prioritize putting a set amount of money each month into your retirement account. William Schantz advises that this should be automated instead of doing it manually because it takes away the temptation to skip a month here and there.
2. William Schantz Suggests Finding the Right Account
A 401(k) account is suitable for retirement, or you may choose your company’s suggested account if you have that option available. Many companies offer a provident fund account that deposits a portion of your salary plus your employer’s contribution into a separate account, making it available for retirement.
3. William Schantz Encourages You to Measure Your Savings and Make Adjustments
Often, we reach into our savings to facilitate lifestyle changes and life transitions. However, you should make the necessary adjustments to maximize your retirement savings for the future. You can add extra money into your savings account later if you choose to withdraw a certain amount to facilitate these changes, especially if they are unavoidable.
Efficient retirement planning begins early, and you can move towards your retirement planning goals by determining how much money you’re willing to save up and predicting your major expenses. William Schantz’s retirement planning steps will ensure you stay ahead of the curve and facilitate any changes as they come.