by Catherine Rein
(last updated April 24, 2009)
My father is currently 63 and is trying to decide when will be the best time to retire. Some of his co-workers retired early, before they turned 62 and now are concerned they won't have the income they need to live comfortably. His health is still very good, which is a major consideration for most people approaching retirement age. He and my mother want to be able maintain a similar lifestyle once retirement hits.
He has about $600,000 currently in savings and is wondering if this will be enough to retire on. The typical rule of thumb is that you can draw 5 percent of your savings every year in retirement. So if you've saved $200,000, you should be able to use $10,000 each year for your retirement.
If you are getting close to retirement age and are trying to determine how much income will be available to you from savings and social security, consider the following:
Keep in mind that retirement doesn't have to be about government benefits and health care expenses. You can have the flexibility that retired persons enjoy at an early age if you plan your choices carefully. With enough income coming in from real estate, stock dividends or businesses, you can cover your expenses and be free from the requirement to maintain continuous employment. You can pursue your interests and spend time working, volunteering or enjoying family and friends.
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