Evaluating your retirement needs
If you retired today, would you have enough money to fund your desired retirement lifestyle?
It may be a difficult question to answer because there are so many variables to consider. However, it is important to evaluate your present financial situation and attempt to forecast your retirement picture.
Pre-retirement
In your Pre-retirement calculation, you need to ask yourself the following questions:
- What is the market value of all my investments today (include pension and saving plans)?
- How much money do I invest each month?
- What is the average rate of return I can generate on my investments until I reach retirement?
- What will my investment portfolio be worth at retirement based on those assumptions?
At retirement
For the "At retirement" calculation, you need to ask yourself the following questions:
- How long do I expect to live, or how long do I need the money to last?
- How much money will I need/want each month after taxes?
- How much pension income can I expect to receive from the government?
- How much pension income can I expect to receive from a company pension plan?
- How much money can I draw from my personal retirement portfolio and for how long.
- While these calculations may seem complex, HSBC can help you find answers to the above questions.
Find out more about retirement planning where you are..
