How Much Income Will You Need After You Retire?

COLUMBIA, S.C., Aug. 25 -- South Carolina State Treasurer Curtis Loftis issued the following news:

State Treasurer Curtis Loftis knows how complex saving for retirement can seem. But, it's important to remember that you don't have to save a certain number for retirement, the goal is to save enough so that it can be a sustainable income for the rest of your life.

Financial Website The Motley Fool says "while there's no one-size-fits all formula to determine how much income you'll need in retirement, here's how to get a good idea of your post-retirement income need, and how this can be incorporated into your retirement planning strategy."

"It's important to plan ahead for retirement," said Treasurer Curtis Loftis. "Thinking about how much money you'll need in retirement is something that needs to be done now. Planning ahead will make your transition into retirement easier and more stable."

Here's some ways to get an idea of your post-retirement income need.

The 80% rule is a good place to start

A widely used rule of thumb is that if you want to maintain the same quality of life after retirement, you should plan to need roughly 80% of your pre-retirement income. After you retire, you won't have certain expenses.

Example: You won't be setting aside a portion of your salary to save for retirement. And you may not have job-related expenses like putting gas in your car to commute every day. This is why they say you'll need 80%, not 100%, of your income.

Adjust the rule to fit your goals

Of course, not everyone wants to maintain the same lifestyle after retirement. You could travel the world, or want to downsize. The point is that you should start with the 80% rule and adjust it accordingly.

See the full article to see why you may need more or less than 80% of your pre-retirement income: Here's How Much Income You'll Need After You Retire

While you're planning, financial experts say you should keep in mind that your savings won't be your only source of income in retirement. Social Security should be taken into account, as should any pensions or annuities you expect to receive

"It's important to remember to leave room for adjustments," added Treasurer Curtis Loftis. "No one's retirement is exactly the same, so no one should save in the exact same way. Really take the time to think about what you want to do, and the money it will take to do that."