How Much Do You Need For Retirement?

If someone were to ask you how much money you need to retire, what would your number be? Financial Freedom or Retirement has always been my goal ever since I started this blog. I wanted to be financially free by 40. I continue to read personal finance blogs and books to bring me closer to my GOAL.


Although I already set a due date for my goal, I haven't established an exact amount for my goal. The first amount I set was ridiculously high. It was almost impossible for me to formulate a plan to achieve this goal to establish a realistic retirement amount. I did some research and eventually found a way to develop a sensible retirement amount.

For my goal to be as realistic as possible, I needed to take into account factors that will affect my Retirement Goal. The factors I used for establishing my Retirement Goal are as follows:

  • Duration of accumulating Wealth for retirement
  • Projected Monthly Expenses
  • Current Investments
  • Average Inflation Rate
  • Expected Average Annual Returns
After establishing these factors, I was surprised by the massive difference between my Initial Unrealistic Value and The Calculated Realistic Values. My computed Retirement Value was less than half my initial guesstimate. I then used this Retirement Value in planning my investments to reach my retirement goal.


*Normal inflation rate is between 3-4%. 
*Average Philippine Inflation Rate from 2003-2013 years is 4.94%. 
*Average Annual growth of the Philippine Stock Exchange Index from 1986-2014 is 15%.