Ever wondered at what age you should retire? You and many other people have the same simple question. However, the answer is not so simple.
There are various formulas and beliefs about the magical age at which a person should retire and how much they should have saved by that point. The reality is that there is no magic retirement number that fits everyone. Each person is different and needs to be treated as such. Formulas can give you a rough estimate, but what we do at Triumph goes beyond that.
A large chunk of what we do at Triumph centers around retirement and making sure our clients are ready. With the changing world around us, the savings for which people are advised to retire with has changed drastically. The distribution rate has shifted a lot in the last few years and planning around these growing rates can really throw you off. For example, a few years ago some advisors were saying to save $1 million versus some now that are saying to save $3 million. One useful chart comes from Business Insider that shows how much you need to save each day to have $1,000,000 by age 65:
In the end, what it comes down to is this: everyone is different. I know we hear it every day, but I cannot stress this enough. Everyone has a different standard of living, different incomes, and different ways of life. I know one man who retired years ago but has the “go, go, go” factor that keeps him moving even in his old age. He still gets up early, putts around his farm and drives a bus part-time. His retirement age is completely different than mine will be. I plan to retire and that is it. I am done with work. Because of this, we do a step-by-step analysis of each individual person or couple to see how different factors will shift their retirement. We are among the few that do this for our clients.
Retirement is a huge step filled with uncertainty. I’m not sure how the world will change by the time that I reach that stage in my life but I know that I want to be ready to sit on a beach with my wife and not worry about having enough money to do so. The retirement age is illusive but Triumph has the tools to help bring it closer to reality.