Many financial advisors generally recommend a real rate of return of 2 to 3 percent above this figure for conservative investors and 3 to 4 percent for more moderate investors. If your returns are not achieving these results, your portfolio and investment plan should be revised. Increasing your rate of return will probably require more investment risk. You should evaluate your personal disbursements and compare this with your personal receipts. Take a careful look at life expectancies.
Most people underestimate their own life expectancy.
We recommend adding 4 to 7 years to one's life expectancy in projecting income needs and inflation. Review your financial objectives. Maybe an earlier retirement should be postponed a few years or you should plan to work part-time during the first few years of retirement. Carefully review all potential contingent risks such as medical care or long-term care. Maybe your medical coverage should be improved or long-term care purchased.