Six Steps To Reaching Your Retirement Destination

 

- Schalk Louw

 

There is a well-known saying that “life is about the journey, not the destination”. Following my recent article titled How much do you need to retire comfortably, (available at http://bit.ly/2toLBVE) many readers have approached me with a follow-up question: How do I know if I’m on the right track?

Many of these concerned readers referred to the initial income level of 75% to 80% of their last year’s salary that they should aim to provide for in retirement. This income replacement ratio should be used as a sufficient starting point in calculating how much you need to retire in order to maintain current living standards. The truth is, however, that that figure can be influenced by so many variables that it can make the calculation of the actual amount you will need one of the more complicated tasks to tackle. Although that figure may be your “destination”, determining where you are in the “journey” to retirement is even more important. After giving it some thought, I reckon you are close to retirement if you have the following six points firmly in place:

1. DEBT-FREE