For many couples, the idea of living lavishly in retirement is incredibly appealing. Essentially, they want to make their champagne wishes and caviar dreams a reality, ensuring they can live a life of luxury when they leave the workforce. But how much do you need to save to make that happen? If you’re hoping to live your best life with your spouse during retirement, here’s what you need to know.
Is There a Magic Number for a Luxurious Retirement?
Technically, there isn’t a magic number that guarantees couples a luxurious retirement. The main reason why is that every couple may have different ideas of how they want to live after leaving the workforce. Plus, not everyone will live the average life expectancy.
If you want to find your magic number, you need to do some calculations. First, it’s usually best to plan as if you’ll live to reach the age of 100, ensuring you don’t accidentally underestimate how long you’ll live.
Next, you need to consider how you want to live and estimate the total cost. Don’t forget to include general living expenses, particularly medical costs. Healthcare expenses usually rise as a person ages, too, so that should be part of the equation. Accounting for inflation is also a necessity, which you can do a bit by examining historical averages.
In some cases, working with a financial advisor is worth doing. Then, they can help you estimate how much you need available every month to live your champagne wishes and caviar dreams, as well as assist you with identifying a savings target that can make it happen.
What Is a Good Monthly Retirement Income for a Couple?
The issue with defining a good monthly retirement income for couples is that “good” is a subjective term. An amount that feels comfortable for one couple may be insufficient or lavish in the eyes of other couples. Again, that means there isn’t a universal magic number that applies to everyone.
Still, most experts agree that having enough retirement to cover at least 70 percent of your pre-retirement income is a solid target. However, if you want to live luxuriously after leaving the workforce, you may need to aim at a higher figure. That’s why the exercise above is so critical, as it ensures you’re planning for your ideal retirement, whatever that may look like, and can live your retirement dreams.
Do you have any other insights that can help couples that want to capture their champagne wishes and caviar dreams in retirement? Share your thoughts in the comments below.
Read More:
· Back to Basics: Beginners Guide to Retirement
· Putting the “Plan” in Retirement Planning
· 4 Things You Should Focus on When Planning Your Retirement
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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