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Those nearing retirement – and even those already retired – need to know how much money is needed to fund a comfortable retirement.

Kailey Hagen at the Motely Fool writes that the most common rule of thumb is that an average person should aim to maintain 80 percent of their pre-retirement income to have a comparable lifestyle in retirement. But it’s not just a matter of what savings or investments you might have, she writes, you must calculate monthly income.

In order to do that, Hagen suggests reviewing Social Security benefits, pensions, and other reliable income sources. Then it’s a matter of what you are – or anticipate – withdrawing from your savings on an annual basis.

Useful Tools

Take a look at these helpful retirement calculators and other resources from the Motley Fool. Or, if you’re still preparing to retire, Hagen provides a simple formula to figure out a total retirement savings target: multiply the estimated monthly income required by 25. For example, if you think you will need $4,000 per month from your savings, then you should aim for $1.2 million in retirement savings to generate the $48,000 needed annually.

Council of Seniors Supports Legislation to Save Your Benefits

Your promised Social Security benefits factor into your retirement income. Council of Seniors is working hard to get Congress to pass The SAVE Benefits Act. Passage of this bill will make up for the Social Security cost of living adjustment (COLA) money that was withheld from seniors. Seniors are owed $581 to make up for the missing COLAs.

By signing our petition, you can help us show Congress how many people support this important bill.

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