Part 5: Preparing for Retirement - Will you have enough money to live on?

Will you have enough money to live on after you retire? This question is so scary that many people just decide not to explore the answer. Others are put off by the repeated mantra of the media that you need "x" million $s to be able to retire as the vast majority of us will never have anywhere near the amount cited.

Sharon of MidLifeMomMusings has used this retirement calculator to figure out an estimate of what she and her husband will need and made a plan to start working towards achieving those savings. I highly suggest you read her post and think about where you are starting from and want to end up.

We went to a fee only financial planner some years ago and asked this very question. Based on the assumptions used for the calculations at that time we were going to be ok but a lot has changed in the world economy and our personal economy since then so I need to try out this calculator myself and keep adding as much as possible to our savings.

If you do decide to run the numbers don't forget that many people manage to retire by downsizing their lifestyle or moving to a less expensive location. Others live in shared housing or take other steps to stretch what they have.