You may be some way from retirement age, or you may be close and already planning it, but the recent financial problems have in all likelihood hit your retirement account, and made you stop and wonder whether you will be able to retire when you reach that age. People are talking more actively about continuing in work beyond the normal retirement age, and you may be considering whether this will be necessary.

First, the good news, there is no set amount that you absolutely must have to enjoy your retirement. If you have little or no retirement savings yet, you will certainly have some difficulties, and need to change your way of life once you stop earning, or find a part-time income. But retirement isn’t like running a race, where you win or lose. When you retire, you will have a certain amount of income and funds and you will need to make that work for you. The old rule of thumb about needing a certain percentage, perhaps 60% to 85%, of your previous income is a generality, and you’ll find that with some thought and effort you can modify your lifestyle to your new income.

The added complication in recent years is that people are living so much longer than they used to, on average. It is not surprising to live into your nineties, which if you think about it means you are retired for 25 years. The fact that you may have many years in retirement means that you can look at a more aggressive portfolio than is normally considered. You do not have to flee stocks and shares to the extent that used to be advised, since they will have time to recover from a downward cycle within your lifetime. Indeed, you’ll need the better average growth of equities to keep up with your requirements.

In addition to looking for greater gains, you can also modify your behavior to reduce your outgoings significantly. There are many places to find free or cheap entertainment. You may find you use your local library rather than buy books or tapes, and you can also find many facilities in a municipal recreation center, as opposed to a private health club. Eating out less can save an appreciable amount, and is probably healthier for you too.