Respond the Following post

The retirement calculator shows that one requires a sum of around 1.7 million to retire and cater to all their daily expenses. To attain this amount, one will have to work from the time one is age 25 years up to when they are 65 years. Also, one will be spending $68,000 every year for the next 25 years of retirement. It is crucial to consider investing in ways of securing one’s retirement income by using the social security retirement plan, defined benefits pension plans, or having personal retirement savings. One requires to choose the suitable means of savings for retirement based on the amount one desires to get after retiring. Having several investments into retirement savings will help ensure that external factors do not affect the overall income one requires to receive to cater to their daily expenses.
From the calculations, the retirement benefits are sufficient as compared to the projected spending after retirement. One’s spending after retirement is projected to be $1.3 million, but the retirement benefits that are expected are about $1.7 million. It shows a big difference between spending and the services received (Curtis & McMullin, 2019). Therefore, one will comfortably live with the indicated retirement benefits as long as the actual spending will not exceed the projected spending. To maintain the expenditure, one will require to live in an area with a low cost of living and less pre-retirement income than 85%. If one can keep the spending below the total amount annually, then the retirement income will be enough to live on after retiring. However, any changes in the expected retirement benefits per year, in the worst-case scenario, will make the retirement income insufficient.
It is crucial to ensure that one is adequately prepared for retirement by investing in as many ways as possible to accumulate more benefits, which will help in the high spending of long term medical bills after retirement as one continues to age. One can take action early to reduce spending in the present to have more money at their disposal in the future. Working more years before retiring can be a better way of saving more money and increasing the retirement benefits in the long run (Mariner, 2018). Also, one can reduce their spending in the present by downsizing to an affordable house to ensure that less money is spent on housing. Also, it is an excellent choice to cut any unnecessary spending and adopt more aggressive investment strategies. Boosting one’s investment portion from an annual salary can guarantee that one can accumulate the amount they consider enough to meet their specific needs after retirement.
          Every individual is expected to either save or invest in operations, yielding enough money that can sustain one in the years after retirement. Keeping one’s income is a better option than investing since there is minimal risk involved. Investing in say businesses can be helpful, but one should consider the worst-case scenario and find means of getting the required income if the worst happens. Using these two methods can allow one to accumulate the amount faster. Studies have shown that most people require high amounts of retirement benefits than what they will receive. It explains the problems which most individuals face after retiring with an expectation to get high quantities to sustain their spending. Still, they end up getting less money, which is not adequate for their expenditure. Multiple investments in the present can be useful in boosting one’s savings and ensuring that one can accumulate the expected requirement amount as soon as possible. Moreover, reduction of spending during retirement can ensure one has more money to use for medical purposes.

References

Curtis, J., & McMullin, J. (2019). Dynamics of retirement income inequality in Canada, 1991-2011. Journal of Population Ageing, 12(1), 51-68.
Mariner, W. K. (2018). What recourse? Liability for managed-care decisions and the Employee Retirement Income Security Act.