12 Signs That Point Towards a Comfortable Middle-Class Retirement

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The Pew Research Center defines middle-class income as between $67,819 and $203,458 for a family of four. While most people in the middle-class income bracket feel comfortable retiring in some years, others aren’t sure if they have saved enough to achieve a comfortable middle-class retirement.

Remember that the amount you need to retire will depend on your current lifestyle, future expenses, dependents, and other factors. Experts suggest saving at least twelve times your pre-retirement salary.

If you’re unsure if you’re ready to have a comfortable middle-class retirement, here are 12 signs that indicate you’re on the right track.

You’ve Paid Most of Your Debts

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If you’ve paid off most of your debts, you’re well-positioned for a comfortable middle-class retirement. Experts recommend eliminating or significantly reducing debt before retiring to ensure your retirement income doesn’t go toward paying off debt.

You’re Able to Live Within Your Means and Figure Out a Budget

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Being able to review and budget for basic living expenses, healthcare costs, and leisure activities before entering retirement shows that one can sustain a middle-class retirement.

You Have a Diversified Investment Portfolio

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Do you have a 401(k)/IRA, stocks, real estate property, ETFs, and other investments? Then, you are ready to have a comfortable middle-class retirement. A diversified portfolio across different asset classes reduces risk and maximizes potential returns.

You Have Multiple Income Sources

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Another sign that you’ll retire comfortably in the middle class is having multiple sources of income. That doesn’t necessarily mean having an extra job. You could have rental income from properties, dividends from your investments, or a pension from your job.  Multiple income sources give you financial stability and act as a safety net in a financial emergency.

You’re Constantly Saving and Investing

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With consistent savings and investments, you’re set for a comfortable retirement. That means you regularly contribute to your IRA/ 401(k) and invest in real estate, stocks, etc. Having consistent savings means you have enough income to cover your retirement expenses and still have extra in case of emergencies.

You Have an Emergency Fund

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Having an emergency fund in place is another sign of a comfortable retirement. The fund provides some financial cushioning in unforeseen circumstances like recession, sudden income loss, urgent medical emergencies, home repairs, etc.

You Can Afford to Splurge Occasionally

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Being in the middle-class income bracket is often characterized by a sense of steady income. Having your expected retirement expenses well planned out and being able to splurge on things you love occasionally indicates that you’re ready to have a comfortable middle-class retirement.

The ability to afford vacations, dining out, and entertainment shows you are prepared to retire.

You Can Access Quality Healthcare

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Accessing quality healthcare is part of being in the middle-class income bracket. If you can currently and in the future have access to quality medical care and can afford reliable health insurance coverage to cover medical expenses, that shows you’ll have a comfortable retirement.

You Have a Retirement Plan That You Constantly Review

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If you have a retirement plan, you’re on the right track to a comfortable middle-class retirement. Additionally, your finances should keep up with your retirement plan, meaning you’re constantly contributing to your IRA/401(K), investing, or saving.

A retirement plan allows you to review your expenses to determine if you have enough to support yourself once you retire.

You Have Sufficient Retirement Savings

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If you have saved at least ten times your annual salary by the time you are 65 and can live off about 4% of your investments in each year of your retirement, that’s a sign that you’ll have a comfortable middle-class retirement. These estimates allow you to cover most expenses for at least 30 years.

You’ve Thought About Long-Term Care Plan

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If you’ve previously considered long-term care options and plan to cover your healthcare or assisted living costs, you’ll have a comfortable middle-class retirement.

You’re Working With a Financial Advisor on Retirement Planning

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One sign that you’re ready to have a comfortable middle-class retirement is if you’ve been working with a financial expert to ensure your retirement plan aligns with your financial goals.

Working with a professional gives you a clear vision of how you want to spend your retirement years and makes it easier to budget according to your needs, including lifestyle needs, healthcare costs, hobbies, and more.

These are some of the signs that indicate you’ll have a comfortable middle-class retirement. If you’ve ticked most of these boxes, you’re on the way to building a sustainable and comfortable retirement lifestyle.

15 Items That Used to Be Cheap but That Are Now Shockingly Expensive

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It’s no secret that the cost of living continues to rise. While some items have remained affordable, others have seen significant price hikes that might shock you.

From everyday essentials to guilty pleasures, here are 15 items that have become shockingly expensive.

15 Items That Used to Be Cheap but That Are Now Shockingly Expensive

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

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I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.

Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

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Everything comes with a hefty price tag these days. From indulgences to essentials, the cost of living keeps rising. We used to consider certain items affordable options, but now they’ve become so expensive that they’re no longer worth it. Here are 15 things that have lost their affordability and make us wonder if they are worth it!

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28 Practical Ways Frugal People Save Lots of Money

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Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.

Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.

28 Practical Ways Frugal People Save Lots of Money

14 Ridiculously Random Tips That Could Save You Lots Of Money

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Want to save some money? There are so many ways to save money that are published in articles all day, every day.

It can be tiring to sort through them and find the ones that work for you, so we decided to scour the internet and find some of the best ones to share with you. But we couldn’t decide which ones to share with you, so we just decided to share the ones we liked, which means that these are pretty random!

14 Ridiculously Random Tips That Could Save You Lots Money

 

 

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