Why should you be concerned with retirement and estate? How can you estimate how much you need to save for retirement?

Answer:

1)      The young individuals should timely start their estate planning which include planning of house, business, investments, retirement plans, etc. for the later stage of their life. The retirement and estate planning concerns are genuine because of the several reasons:

a)      For saving the wealth for coming generations.

b)      For the distribution of assets among the family members without any legal involvement.

c)      For maintain financial stability in different phases of life.

d)     For healthcare expenses in the later stage of life.

e)      To minimise the taxes.

Without planning for retirement and estate, the individuals can come across the various financial difficulties. And when the time passes by and if there are no savings in different forms, the individual can face serious trouble and then they are left with no choice. Hence, the individuals should start planning for their retirement and estate at early stage of life.

2)      The individuals can forecast the amount to be saved for retirement in following ways:

a)      The individuals should sum up their total current monthly expenses and should calculate their monthly expenses after the retirement.

b)      The sources of income after the retirement e.g. interest, dividends, rent etc.

c)      Calculate your years to retirement and consider your life expectancy.

d)     The inflation calculations after retirement.

e)      The total amount required after the retirement.

f)       The calculation of monthly savings to reach the total amount required after the retirement.

The help of financial advisors can be taken to reach the estimates and for planning in better way.