Next, you'll want to investigate any potential benefits from a company pension plan. The amount of your pension benefit generally depends on your salary and your length of service with the company. A visit with your company pension or benefits administrator will help you determine what to expect from this source. Once you have an understanding of what Social Security and pension plans can contribute, you can compare this total to your current annual income. A rule of thumb suggests a retirement income equal to about 65 to 80 percent of your current income is needed to maintain your current standard of living.
Personal savings is the third element in successful retirement planning.
And it is the most crucial of the three, because it is the variable that often determines how comfortable your retirement will be. Julie Nonaka Jow is a certified public accountant and financial planning associate with AXA Advisors in Honolulu. The Honolulu Advertiser, a division of Gannett Co .