How much money will you need to retire?

Do you know how much money you need in order to retire?

The answer may surprise you!

Generally speaking, you will need about 70 percent of your pre-retirement salary
to live comfortably
. The percentages vary, somewhat, depending upon your situation
and what you plan to do after retirement.

Does your current retirement plan include:
• Travel?
• Building your dream home?
• Paying for health insurance?

According to the Social Security Administration, 9 out of 10 individuals over age 65
receive Social Security benefits. These are monthly cash payments made to retirees
who paid Social Security taxes (e.g. FICA) and earned at least 40 credits (10 years of
work). Actual benefits depend on lifetime earnings - more earnings, more benefits - as
well as retirement age.

However, the average Social Security monthly benefit payment leaves an enormous gap
to be filled with other sources of revenue. In 2010, most retirees reported that Social
Security made up only 37% of their expendable resources. The rest came from savings
and investments, post-retirement earnings, and pensions.

How Much Will My Pension Contribute?

If you are lucky enough to have a defined-benefit (DB) pension, it will definitely help your
bottom line. A DB pension - not to be confused with a 401k or other investment plan - is
a contract for a fixed sum to be paid regularly to a retiree or if the worker becomes
disabled. Both the employer and employee contribute to the pension fund. These
pensions are common for public employees, such as police officers, teachers and

Many workers with federal pension plans do not pay Social Security taxes while
contributing to their pensions. If any part of the pension is from work where Social
Security taxes were not paid, it could affect the amount of the Social Security benefit.

Whether Social Security benefits and/or DB pension payments are included in your
retirement plan, it is important to recognize a large shortfall may exist between income
and need. This shortfall may be filled with either savings and investments or earnings. If
you are not working now and saving for later, you may find yourself working after
retirement to make ends meet.

It is never too late to start planning for your retirement, but you should start now. Beacon
Financial Group is a financial planning firm with more than 20 years of experience.
Contact Beacon Financial Group for a complimentary financial consultation to
help identify your post-retirement income gaps and plan for a more secure future.

There is absolutely no cost or obligation.

Fast Facts & Figures about Social Security, 2012. Publication No. 13-11785. Released:
August 2012
For more information, contact Beacon Financial Group to speak to an experienced,
licensed advisor: (888) 769-4333 or