Your earning potential between now and retirement impacts the above factors as well - earning more means you will also be able to save more. For many people, raises and promotions mean that their standard of living will increase. This makes it all the more important to consider how much of those additional dollars to save so that you can keep your quality of life in retirement.
Some people may be very comfortable with all of this. For many though, these questions are not comfortable. In fact, they might be terrifying. So, how do we deal with all of these great unknowns?
For starters, here is a simple calculator to help give you an idea of what your magic number might be. This provides a glimpse of insight into what your retirement needs to look like to continue living the life to which you are accustomed. This is your chance to be brave and not turn away. Do not give up. Look at that number, take it in, and if you haven’t already, begin thinking about how you are going to get there. Retirement is something we must start planning now. It’s not too early, and more importantly, it’s not too late. Anxiety and excitement are two sides of the same coin. If your magic number causes anxiety, what can you do now to start making that number a reality? Wouldn’t that reality be exciting?