Retirement Reality Check

When my husband and I sat down with a retirement planner a few weeks ago, we nearly fell off our chairs when he told us how much we needed to have saved. According to his figures, the amount we should be putting away for retirement is more than we both make in a year.  Only later, after we were at home and reading the fine print on some handouts, did we learn that the figures he was using were based on cost of living figures for a major metropolitan area.  We also discovered the figures he was using for such categories as travel and entertainment were more in line with a Paris Hilton type of lifestyle than with anything resembling our interests and activities.

Needless to say, we didn't sign up for any of this retirement planner's services, which is a good thing, because we also learned he makes his income from commissions.  Since most of his suggested retirement investments were tied to some sort of insurance product, it seemed to be a shady deal all around.  The good thing about this experience is that it motivated us to take a good look at our projected retirement circumstances, and fortunately, we found out we're in a lot better shape than we’d thought. 

The truth is, we will need much less in retirement savings than even many reputable sources would have us believe.  Our home is nearly paid off now, so by the time we enter retirement, we will not have a mortgage.  We will also not have any other form of debt, including car loans.  In addition to retirement savings, we have money in other accounts to cover the cost of replacing vehicles, making home repairs, and covering unexpected expenses.  For us, paying off debt has been an excellent retirement strategy. 

It is unlikely that our hobbies will change much by the time we retire, and the things we currently enjoy most during our free time cost very little.  I love to garden, my husband is a fisherman, we both like to take walks and go biking, and I also enjoy reading and knitting.  We'd much rather get together with family and friends at home than at a club or restaurant, and although we enjoy traveling, we’re quite happy with budget accommodations.   We also prefer eating at home most of the time, shopping in second hand stores, and reusing and recycling rather than buying something new.

Although our need for medical care may increase as we get older, it is doubtful that our premiums and co-pays for Medicare will be any higher than what we already pay through my husband's current employer-sponsored health plan.  Plus, I'll still be working as a freelance writer in some capacity as long as my mind is good, so we’ll continue to have an income source other than our retirement funds.

I’m thankful we made time for a retirement reality check.  Without a doubt, we need to keep saving for retirement, but we can stop stressing over whether or not we’re saving enough.  We’re going to be just fine.