The retirement savings conversation today focuses on whether you are saving enough, considering that people are living longer and corporate pension plans with defined benefits are becoming scarce. People don’t feel secure about Social Security, either.
However, some people actually might be saving too much for retirement, after taking into account factors specific to each individual. If you’ve been saving 10 percent of your income during your entire career, you may be doing better than you think. Take this quiz to see which factors may affect your future retirement. And be sure to talk to your financial planner to get a better feel for your specific retirement planning needs.
In any case, you will continue to be responsible for Fido in retirement. And considering that pet care costs have been on the rise, you might actually need to save more to account for this expense.
If you already prefer cooking at home over eating out, you are not likely to see your expenses go down in retirement on this account.
If you prefer to spend your money on decorating your home, you are not likely to get a lot back from that sort of investment. Furniture fashions change and you can't count on raising a lot of money from furniture sales.
If you are spending a lot on medical expenses, you are not going to get a break in retirement. The average person's medical expenses are likely to go up over time.
If you're self-employed, on the other hand, you are not likely spending a lot on these expenses to begin with. So your retirement spending is not going to benefit a lot from the absence of these expenses. Not only that, you have to fork over funds for your own retirement savings as well, and you don't get a company match.