Petco Barking About Benefits Magazine Q3 2012

Bury It Now…Enjoy It Later! Today’s economy is shaking the tails of canines and felines from Main Street to Wall Street. With higher prices for everything from gasoline to groceries, chances are saving for the future and retirement may not be pawticularly high on your priority list—but it should be. Even in a tough economy, a disciplined savings habit is the best way to reach your retirement savings goals. How Much Do You Need to Retire? Many financial experts say you’ll need 70% to 80% of your annual pre-retirement income (for each year in retirement) in order to enjoy a lifestyle similar to the one you have now. But will that be enough? The basic 70% to 80% formula assumes that you will save on work-related costs like commuting and clothing, as well as the expenses of raising children and paying your mortgage. But what if you have healthcare expenses, college tuition bills, credit card debt, or you’re still paying a mortgage? Every individual has unique circumstances that will affect their spending. The best way to predict your future and retirement income needs is to evaluate your personal situation and develop a plan that aligns with your lifestyle, budget and long-term goals. Here are things to consider: • When do you expect to retire? • How much money will you spend each year? • How long do you expect to live? • What income will you have from other sources, like Social Security?

• What is your expected return from your investments? • How can you protect your investments from inflation?

Some people will spend more than their current income during retirement and some will spend less. We’re now living longer than ever before, which means your retirement savings may need to last 25 to 30 years, or longer. In addition, Social Security and pension income (if you have any) may not be as dependable as it used to be. These are additional factors to consider when estimating your retirement income needs.

By taking the time to estimate how much you need to save based on your target retirement date, income, investments, inflation and personal circumstances, you’ll stand a better chance of retiring with your tail wagging.

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