THE REVERE ADVOCATE – FRIDAY, MAY 21, 2021 Page 13 How Much Will You Need to Save for Retirement? Dear Savvy Senior, Is there an easy way to fi gure out how much I will need to save for retirement? My wife and I are both in our late fi fties and want to fi gure out about how much we’ll need in order to retire comfortably. Ready to Retire Dear Ready, How much money you need to retire comfortably is a great question that all working adults should ask themselves. Unfortunately, far too few ever bother thinking about it. But calculating an approximate number of how much you’ll need to have saved for retirement is actually pretty easy and doesn’t take long to do. It’s a simple, three-step process that includes estimating your future living expenses, tallying up your retirement income and calculating the difference. Estimate Living Expenses The fi rst step – estimating your future retirement living expenses – is the most diffi - cult. If you want a quick ballpark estimate, fi gure around 75 to 85 percent of your current gross income. That’s what most people fi nd they need to maintain their current lifestyle in retirement. If you want a more precise estimate, track your current living expenses on a worksheet and deduct any costs you expect to go away or decline when you retire, and add whatever new ones you anticipate. Costs you can scratch off your list include work-related expenses like commuting or lunches out, as well as the amount you’re socking away for retirement. You may also be able to deduct your mortgage if you expect to have it paid off by retirement, and your kid’s college expenses. Your income taxes should also be less. On the other hand, some costs will probably go up when you retire, like health care, and depending on your interests you may spend a lot more on travel, golf or other hobbies. And, if you’re going to be retired for 20 or 30 years you also need to factor in some occasional big budget items like a new roof, heating/air conditioning system or vehicle. Tally Retirement Income Step two is to calculate your retirement income. If you and/ or your wife contribute to Social Security, go to SSA.gov/MyAccount to get your personalized statement that estimates what your retirement benefi ts will be at age 62, full retirement age and when you turn 70. In addition to Social Security, if you or your wife has a traditional pension plan from an employer, find out from the plan administrator how much you are likely to get when you retire. And fi gure in any other income from other sources you expect to have, such as rental properties, part-time work, etc. Calculate the Diff erence The fi nal step is to do the calculations. Subtract your annual living expenses from your annual retirement income. If your income alone can cover your bills, you’re all set. If not, you’ll need to tap your savings, including your 401(k) plans, IRAs, or other investments to make up the diff erence. So, let’s say for example you need around $60,000 a year to meet your living and retirement expenses and pay taxes, and you and your wife expect to receive $35,000 a year from Social Security and other income. That leaves a $25,000 shortfall that you’ll need to pull from your nest egg each year ($60,000 – $35,000 = $25,000). Then, depending on what age you want to retire, you need to multiply your shortfall by at least 25 if you want to retire at 60, 20 to retire at 65, and 17 to retire at 70 – or in this case that would equate to $625,000, $500,000 and $425,000, respectively. Why 25, 20 and 17? Because that would allow you to pull four percent a year from your savings, which is a safe withdrawal strategy that in most cases will let your money last as long as you do. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior. org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book. Revere on the Move Urges Residents to Provide Urban Farming Ordinance Testimony at May 24 City Council Meeting Website Created for Residents to Share Their Testimony REVERE – On Monday, May 24, 2021, the Urban Farming Ordinance will be presented to the Revere City Council after 10 years of urban farming programing to guide the development of the Urban Farming Ordinance over the past 5 years. The Urban Farming Ordinance was created to increase access to fresh, locally grown, wholesome foods for the residents of Revere. Revere on the Move and their local partners have established a wide and increasing variety of programs and resources for access to all food – the Urban Farming Ordinance expands the work already being done by integrating state and national policies to encourage home gardeners, commercial businesses, and non-profi ts to grow their own food. Revere residents have long asked for additional community gardens, urban farms, chickens, bees and more, and this Urban Farming Agenda addresses the many areas of Revere’s food economy. According to the ordinance, growing local foods eliminates both the need for fossil fuels in transporting food and the use of destructive chemicals that are part of large-scale food production operations – benefi ting both the residents and the environment. Revere on the Move is encouraging residents to provide testimony at the May 24 City Council Meeting. If you are interested in speaking at the meeting, please email drana@revere.org. “Revere’s history is rooted in farming from the farms and greenhouses in West Revere, to the backyard and community gardens that continue today,” said Dimple Rana. “Over the last 10 years, Revere on the Move has implemented urban farming initiatives that have gained a lot of interest such as our community gardens, farmers market, and bee hive pilot. Across the country, cities like Revere are realizing the value that urban farms can create several social, environmental, and economic benefi ts.” If you are unable to attend the May 24 meeting, Revere on the Move has created a webpage, www.revere.org/getinvolved, where residents can share their testimony online rather than in person. To do so, please click on the “Urban Farming” tab and share your testimony. At the May 24th City Council meeting, the public hearing will take comments and then move to a full public hearing at a zoning sub-committee meeting scheduled later. On May 25th the Planning Board will also conduct a public hearing due to the zoning changes in the ordinance. The Zoning Sub-Committee will make a vote and then move to the full City Council for a vote prior to implementation.
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