How to live comfortably in retirement

Your retirement depends on your financial success — but financial success is part reality and part perception. In fact, if you moderate what you perceive as financial success, you could improve the financial reality of your future.

It’s particularly important to consider this as you approach retirement, but this dynamic actually starts well before you’re ready to retire. It has to do with what kind of lifestyle you think you need.

People tend to raise their lifestyles as their income levels rise, but taking this too far can be destructive to both the perception and reality of your financial future. To understand why, just look at the arc household income tends to take over the years.

key factors to consider

1. Age and income

According to the US Census Bureau, median household income when the primary earner is between 25 and 34 is $54,243. This climbs to $66,693 when the primary earner is between 35 and 44, and to $70,832 when the primary earner is between 45 and 54. As you might expect then, income tends to rise as people get farther along in their careers. So far so good.

After that, though, income takes an abrupt U-turn. When the primary earner is between 55 and 64, household income declines to $60,580. It plunges further to $45,227 for households whose primary earner is between 65 and 74, and continues to decline when the primary earner is 75 or older, to just $28,535. This last figure represents a decline in household income of some 60 percent from the prime earning years of ages 45 to 54.

You might expect income to decline somewhat as you enter your retirement years, but a 60 percent drop could come as a shock to your lifestyle. The continued decline upon reaching age 75 implies that resources become even more limited as people move through what has traditionally been thought of as the golden years or retirement. That decline is partly because more and more of this population is unable to continue to work, that is WHY you need an Online Business to fall back to at this time

2. Age and expenses

A traditional financial planning assumption is that retirees need less income than people in their working years, and to some extent this is true. For the most part, retirees are no longer supporting their children, their homes are often owned outright, and they no longer have to save for retirement. However, figures from the Bureau of Labor Statistics show that the drop-off in expenditures in people’s retirement years is not as great as the drop-off in income.

Like income, annual expenditures peak for people aged between 45 and 54, at a national average of $60,524. However, while household incomes drop by about 60 percent when the primary earner is 75 or older, expenditures for that age group are only 43 percent lower. In other words, for retirement planning purposes it is significant to note that expenses don’t typically fall as fast as income. One reason for this is health care expenses, which usually increase rather than decrease as people enter retirement.
Therefore, it is wise for a low income retirees aged between 45 and 60 to own an online home business to help you live your life fulfilled Increase your Income