Core Insights - The article discusses retirement planning for individuals around age 55, emphasizing the importance of assessing Social Security benefits and portfolio savings to create a realistic retirement budget [21]. Social Security Benefits - Social Security benefits are calculated based on the highest-earning 35 years, with an example showing that an individual earning $80,000 annually could expect about $3,533 per month or $42,406 per year if retiring at age 67 [1][2]. - Delaying benefits until age 70 could increase the monthly benefit to a maximum of $52,583 [1]. Portfolio Savings - The article suggests that individuals should aim to contribute 10% of their income to their retirement portfolio, potentially accumulating around $1.4 million by age 67 if achieving an 8% return [6][8]. - Different investment strategies can lead to varying portfolio values at retirement, with conservative bond investments yielding about $1 million and aggressive S&P 500 investments potentially reaching $1.9 million [7]. Income Structure - Various withdrawal strategies are discussed, including a traditional 4% withdrawal rate, which could provide an annual income of about $56,000 from a $1.4 million portfolio, combined with Social Security for a total of approximately $98,406 [11]. - An aggressive growth strategy could yield around $154,000 annually, while a lifetime annuity could provide about $9,000 per month or $108,000 per year [13][14]. Spending and Taxes - Financial advisors recommend the 80% rule, suggesting retirees should expect to spend about 80% of their pre-retirement income, which translates to a target of $112,400 for those currently earning $140,500 [17][18]. - Taxes will impact retirement income, with Social Security benefits potentially taxed at 85% and withdrawals from pre-tax accounts subject to income tax [19]. Retirement Planning Considerations - The article emphasizes the importance of regularly reviewing retirement plans and making necessary adjustments to savings and investment strategies [3][4]. - It encourages individuals to analyze their monthly budgets to ensure spending aligns with projected retirement income [20].