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Millions of American workers plan to retire this year. Many wonder if they’ll have enough to stay retired. Inflation, interest rates, the stock market and the economy in general all can have an impact on retirement planning. How much does the average retiree need to live on? We’ll tackle that question today on MoneyWise. The conventional wisdom is that after you stop working, you can live comfortably on 80-percent of your pre-retirement income. Financial planners arrive at that figure for a number of reasons. WHY YOU GENERALLY NEED LESS INCOME IN RETIREMENT Once you retire, you’ll no longer be putting 10-percent of your income into your retirement account. And since you’re no longer earning a salary, you won’t be paying 7.65-percent of it in Social Security and Medicare taxes. You’ll no longer have work-related expenses like travel and clothing. And finally, a portion of your retirement income will come from Social Security benefits. But a survey of recent retirees by T. Rowe Price found they were living on only 66-percent of their final working salary, and they reported being content. Granted, those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it? It turns out that many of them saved more than 10-percent of their income during their working years. That not only increased the value of their portfolios it also trained them to watch their spending and stick to a budget. Another huge factor was making it a priority to pay off their mortgage before retiring eliminating what is usually the biggest household expense. In addition to that, successful retirees have found numerous ways to either cut their living expenses or increase their income. Here are a few examples. CUTTING EXPENSES: Some empty-nesters have looked around their unoccupied bedrooms and seen dollar signs. There are services like RoomMates4Boomers and SilverNest that can help you rent out a room in your house. COVID has put a crimp on that idea for the time being but as the pandemic eases it will become a more viable option. Many retirees naturally take to gardening as a way to get fresh air and spruce up the landscape. It’s not a big leap to put in a vegetable garden, and everything you harvest reduces your grocery bill. Do you really need two cars once you retire? You can save on insurance, registration and repair costs by getting rid of one of them. Also, at this stage of life, do you really need life insurance? It’s supposed to replace lost income if you pass. But if the kids are grown and out of the house, you no longer need to provide for them. And now that the house is paid for, do you plan to continue living there as long as possible? Most retirees want to stay in their homes, and it’s the cheapest place you can live, far cheaper than moving into an assisted living facility or nursing home. You’re more likely to be able to stay in your home if you make it safe and accessible as you age. Installing grab handles and mats in bathrooms is also a good idea. Curbless showers and walk-in bathtubs can also extend the time you’re able to care for yourself as you age. But by far the most important thing you can do to keep living at home is to exercise. Staying fit and limber is a prerequisite for taking care of yourself and staying out of a nursing home. These ideas can help you retire comfortably and probably on far less than 80-percent of working salary. LISTENER QUESTIONS On today’s program, Rob also answers listener questions: ●When is it wise to utilize debt for property investment? ●At what point does it make sense for a young couple to meet with a financial advisor? ●What is the best way to invest $5,000 when close to retirement? ●When does it make sense to cash in government savings bonds? ●What are your options if you’ve hired a contractor to build a house and find that the work is substandard? Remember, you can call in to ask your questions most days at (800) 525-7000 or email them toQuestions@MoneyWise.org. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29