Thinking about retiring? Better make sure you've got 11 times your last annual salary before hanging up your cleats, according to a new report by Aon Hewitt.
In an article posted on MarketWatch, Robert Powell lists 10 goals for retirement:
- Set aside 11 times your salary: This amount enables you to maintain your standard of living and takes into account inflation and health-care costs.
- Match income and expenses: Figure out your fixed costs and compare them to Social Security payments, pensions and other sources of income.
- Don't worry, be happy: No matter how much money people have, they usually always want more.
- Retire debt-free: Easier said than done?
- Companionship matters: Studies show that those with good human relationships are more likey to achieve financial independence.
- Stay in good health: It's within your control to stay as healthy as you can.
- Manage your risks: Protect yourself from that which you can.
- Cover health-care expenses: Have enough assets, good insurance or a combination thereof.
- Do something: Take up a new hobby and don't just sit around.
- The kitchen sink: Of course, there's more than 10 goals which should be achieved for secure retirement. Examples: Don't stop saving, give to others and plan for worst-case scenarios.