Common Cents: Planning for retirement
Napa Valley Register, January 22nd, 2006
When you determine your retirement
income needs, you make your projections based on the type of lifestyle
you plan to have and the desired timing of your retirement.
However,
you may find that reality is not in sync with your projections and it
looks like your retirement income will be insufficient for the rate you
plan to spend it.
This is called a projected income shortfall.
If you find yourself in such a situation, finding the best solution
will depend on several factors, including the following:
• The severity of your projected shortfall
• The length of time remaining before retirement
• How long you need your retirement income to last
Several methods of coping with projected income shortfalls are described in the following sections.
One way of dealing with a projected income shortfall is to stay in the workforce longer than you had planned.
Read more of this article.