When it comes to retirement, how much money is enough? - AmericaNowNews.com

When it comes to retirement, how much money is enough?

With the economy on a roller coaster many soon-to-be retirees are wondering just much can they afford to take from their nest egg each year.

So just how much is enough? And how much of your nest egg can you spend and not run out?

"I think the number one myth is that you will spend less in your retirement than you did when you were working. We see a lot of people that continue to live the same lifestyle," says wealth advisor Matt Olver.

According to Olver, you'll need 25 times what you're spending right now,which may sound impossible to folks who's 401k's were battered in the recession.

"2008 and 2009 were very difficult for a lot of people and we did see a number of people who delayed retirement," says Olver. 

Here's the good news for baby boomers: Anyone over 50 can take advantage of something called "catch-up provisions."

"You as an employee can put aside $5500 more than someone under the age of 50," says wealth advisor Matt Olver.

Calculating how much a middle class couple with a typical $400, 000 retirement savings could spend, he found that if they retire at 65 and assuming they get $1,900 a month social security, they can spend $3,250 a month and not run out even if they live into their 90's.

Good luck saving and remember, your kids can always get loans for college but there are no loans to pay for your retirement. 

Copyright 2011 America Now. All rights reserved.

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