Page 3 - 2018 How to Retire from Florida
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Question #1:
Can I Afford to Retire?
This question is really about how much Rather than guess, or use someone else’s
income you will have, what your expenses numbers, the best solution is to develop a
will be, and have you saved enough to make Retirement Income and Expense plan,
up the difference? So, let’s look at each with realistic income and expenses
issue separately: expectations. Your retirement budget
should help you meet your immediate
Your income in retirement will come from obligations, and provide evidence of any
several sources: your FRS pension or income shortfalls. 1
Investment Account, Social Security,
DROP, and cash flow from your personal You can then work with a DROP Advisory
retirement and savings accounts. W e’ll cover Council member to address issues and
each of those sources with specific “tips,” create additional income streams from your
but for the time being, let’s concentrate on Deferred Retirement Option Plan (DROP)
the issue of your expenses. and pre-retirement savings plans.
According to The Future of Retirement Income Start by completing a Retirement
survey released annually by Genworth, Income & Expense Data Gathering
expectations about retirement expenses Guide. It will include your: The vast
don’t match reality. More than half (52%) • Personal Data majority of
of surveyed pre-retirees expected expenses • Retirement Income Sources retirees found
to decrease in retirement, when in fact 65% • Retirement Expense that their
of actual surveyed retirees found expenses Projections general living
stayed the same or even increased in • Income desired in retirement expenses
retirement. • Budget sheets increased in
• List of assets and liabilities retirement.
The vast majority of retirees found that their
general living expenses increased in After you completing the data guide, then
retirement. More specifically, retirees we can build a personalized Retirement &
experienced increases in healthcare costs Expense Plan for you. It will give you a
(41%), real estate related expenses (26%) complete snapshot of your retirement
and money spent on dependents (18%).
picture. It also will give you strategies for
spending down debt and for maximizing
You’ve probably read that you will need your retirement income. It will be your
70% to 90% of your current income to live road map for your journey in retirement.
comfortably in retirement. Due to rising
health care costs, inflation, and the
prospects of living well into your 90’s, some
experts argue that you should aim higher! L
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