The Carr Report: What does a comfortable retirement really mean?

Retirement is a long-awaited dream for many, symbolizing freedom from the daily grind and the chance to enjoy life on your terms. But what does a comfortable retirement actually look like? The answer varies depending on your financial situation, personal preferences, and lifestyle goals. In this article I will provide a practical framework for understanding retirement wealth levels and what each one can afford. This guide can help you assess where you stand and where you might need to go in your financial planning. The Reality of Retirement Savings Retirement looks different for everyone, and your experience and lifestyle will largely depend on how much you’ve saved. There are five fundamental Wealth Levels: Secure, Stable, Comfortable, Affluent, and Wealthy—that serve as benchmarks for what you can realistically expect based on your savings. Secure: $0 to $250,000 Saved At the Secure level, retirees rely heavily on Social Security as their primary income source. With $0 to $250,000 saved, Social Security will cover essentials such as food, housing, and healthcare, but there’s little left over for discretionary spending. Unexpected expenses, like medical bills or home repairs, may pose a challenge. Lifestyle: This is a no-frills retirement focused on covering necessities. Travel, hobbies,...