May

17

How Much Do I Need to Retire at 55?

By Mikael | 38,736 views

What will you need to retire at 55?If you are looking forward to the time where you’re going to retire then you might be one of the many people that have been asking themselves how much money they would need to be able to retire early. I’ve found that a lot of people seem to find the age of 55 years old to be a great age to retire which I can only agree with. The sooner you’re able to retire or become financially free the better if you ask me.

But in order to be able to retire at 55 you will need to know if you can afford to retire. You might have your 401k plan in place but for most people that might not be enough to retire on and if that is all you have then things might not be as great as you would want them to be.

So how do you find out if you have enough money to be able to retire earlier than planned and if possible being only 55? If you have the 401k plan then you could use something called a 401k calculator which is going to tell you how much money you can expect to be paid. If you have additional fund in something like savings accounts you can also find a savings calculator to help you out.

But what it basically comes down to is not all of these calculations but rather how long you’re planning to live and what amount of money you are going to need coming in every single month in order to be able to live the life as a retiree in the way that you had planned for. For most people this might open up for some unpleasant news but it is better find that out now where you’re able to do something about it than at a time where it might be too late.

Before I move on I forgot to mention that if you have made investments in stocks or you would want to calculate things like compounded interests then there are tool like compounding interest calculators as well as investment calculators that will help you get an overview of that.

If you end up getting a result that will provide you with the money that you need and want then congratulations because you’ll be one of the very few and many will envy your achievement.

If you on the other hand are not getting the results that you were looking for then TODAY is the day to start looking for opportunities that will help you get to the point where you can retire at 55 or at least retire as close to that goal as possible.

My recommendations for how to do that is to start making more money and preferably online because not only will it provide you with extra money that you can save on a monthly basis but it will also be able to give you an extra monthly income that you yourself determine which as a results would make the question of how much you would need to retire seem irrelevant.

To Your Success,
Mikael

20 Responses so far

You got to keep in mind inflation as well. And for some unfortunate people the cost of medicines or supporting kids (even in their old age). Of course, those are things that you don’t think you will ever need, but, its best to add a sum for these type of emergencies in your estimated monthly retirement needs.

Absolutely true Manshu. Unfortunately most people don’t think of it until it is too late.

I highly doubt in this economy that many people can afford to retire at 55. With the real estate market and recent stock market decline many people have lost most if not all of their investments.
.-= Daniel@bad credit loans´s last blog ..401k Contribution Limits, Rollover and Withdrawal Plan =-.

Hi Daniel, I am sure you are right but I don’t think it has much to do with the economy.I agree that it is not making it easier but most people are not able to retire no matter the financial situation as most have not prepared for and worked at it long enough.

The goal of retiring at 55 is a dream. However there is nothing more that would frighten me than to quit my job and ten years into retirement having to go back to work again.

We still have a ways for retirement – but we are doing our best to be smart with out money and keep our credit scores high.

Hi Timmy, welcome to the blog.

Yes it is true that it is a dream for a lot of people and I can definitely follow you in not wanting to ever experience having to go back to work once you’re retired.

But that something is a dream doesn’t mean that it can’t be achieved and I would actually say that if it really truly is a dream then you should work very hard at reaching that dream.

Unless you’re already 55, then I would argue that most people will be able to retire at 55 if they put their hearts and efforts into it.

But I also know that most people don’t.

This is a very fantastic information that provide all those calculator that I click through one by one to find out how all this can help me to retire rich early. I love it very much. But, I still agree by making more money, you can only do investment and saving. or else all money go will back to your bank.
.-= Speed Yo´s last blog ..Free in-home wireless broadband service =-.

In the UK many people use equity release or reverse mortgage to help thier annuity rates income. Especially now the economy is poor and annuity rates have fallen.

With the country facing massive unemployment during the Great Depression, Social Security was a way of providing older workers with guaranteed income so that they could leave their jobs, freeing up slots for younger workers.
Jugendherberge Hamburg

Keep in mind, Medicare coverage won’t start until age sixty-five. If you are planning retire at 55, make sure you will have a secure source of health insurance coverage that will provide for you until you become eligible for Medicare.

Hi Phil,

The “funny” thing is that everyone better prepare to have health insurance that will cover ALL of the retirement period. Banking on a concept that is literally insolvent is not a good and safe plan.

Mikael

In the UK, A Family SIPP is ideal for families, grandparents, parents and grandchildren can all be members and the fund can be invested under a common family strategy. Scheme Pension can be paid to the senior members and funds can accumulate for the younger ones in a number of ways.

The international financial crisis changed all the variables that were used to retire five years ago. Honestly before put my money in an investment fund, rather I would have two good retail websites. With some experience and some work, that is also a retirement.

I think the recession has changed a lot of people’s goals. 55 used to be the retirement “goal” for a lot of people. With our aging economy and many people losing 20% or more of their wealth over the past year, retiring at 55 now seems like more of an achievement for the few, than the realistic expectations for the majority.

Retiring at 55 was a possibility five years ago, but like many people, I suffered a significant set-back this past year. I am hopeful that the next ten years will be a decent one for stock returns. But I am putting fewer “eggs” in the riskier baskets than I used to.

Hi Andy, well… counting on or hoping for the stock market to soar is probably what a lot of people is doing, but in my opinion “hoping” and “wishing” is the road to disaster.

For the many people that is taking this “lazy hopeful road” I hope I am wrong.

Taking action and making things happen has always been a safer solution in my book.

I really hope I am able to retire at age 55. I still have a while but will keep this post in mind as I get to that age.

Retiring early can be possible with this great tips (thanks Mikael) but do keep in mind that you don’t have to rush to hit 55. Retirement is at 65 so you are trying to get a decade extra relaxation and freedom but do keep in mind working a few extra years means more money in your retirement when you can’t (depending on career you have) work. My mum was considering retiring early from her job and she is only contemplating that because the mortgage is paid and she has a grasp of her retirement fund. Only reason she’s not going forward now is because her told her she ahs to work a few more years to guarantee retirement fund.

Advice here is all well and true but we still have the problem with the economy that is causing us problems. It is quite a common belief that the worst has yet to come. That our US dollar will start to devalue substantially making inflation go up over the roof. With whatever good plans that we might have, faced with problems like potential double figure inflation even the best plans could go to waste.

I know it sounds all the bit of doom and gloom but really we are at a time when we are expecting things to get worst. The best advice I can give is to save save save and get whatever opportunies that you have and run with it.

I cannot give you the formula for success, but I can give you the formula for failure–which is: Try to please everybody.

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