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Overview | Government Programs | Private Insurance | Home Equity | Other Options | Resources |
  | Self-Insurance/Personal Savings Plan | Long-Term Care Annuities |
Charitable Remainder Trusts | Medicaid Disability Trusts |
Prescription Drug and Other Assistance Programs |
First, you need to know how much you can expect from Social Security, pensions, annuities or other retirement vehicles. Make a list of all of your sources of retirement income, and estimate what the monthly benefit will be.
Social Security:
The Social Security Administration sends every
adult over the age of 25 a statement with their projected Social Security
benefits.
Pension:
Contact the plan administrator of any pension
plan you have participated in to determine how much your benefit will be.
IRA and 401(k) plans:
Look at your total IRA and 401(k) savings and estimate how
much monthly income you can withdraw from savings.
Other Income:
List Sources.
Next, ask yourself three important questions:
Estimate the total value of your assets, including cash, home equity, automobiles, other personal property, the value of insurance policies and so on. | _______________ | |
Subtract the total of your liabilities, including mortgages, credit card and loan balances, home equity loans and other debts from your total assets. | -- | _______________ |
NET TOTAL | = | _______________ |
The result is your net worth. Remember, not all of your assets will be available for retirement income unless you sell them or use your home equity as a source of retirement funds.
Most experts recommend planning for at least 80% of your current pre-tax income in order to maintain your current living standard.
Next, calculate the gap between income from Social Security, retirement plans and assets and your retirement income goal. The gap represents the amount you will need to save between now and retirement in order to meet your overall goals. How much you need to save each year to fill the gap is a complicated calculation.
You can find two calculators to help you calculate the gap.
Page Last Updated: April 10, 2007