Green Retirement Blog

No matter which country you live in, or which currency you use, Green Retirement Planning will work - It is universal. It does not matter if you live in Canada, England, Australia, France, Germany, Japan, or Sweden. It works in, dollars, euros, pounds, yens and dinars. Green Retirement Planning is a universal, principle, method, and mathematical formula.

Principal

How much you spend in retirement determines how much savings you need for retirement. You control your spending, therefore, you control how much savings you will need for retirement. By practicing conservation, and spending less, you can retire with less savings.

Method

Since, how much you spend in retirement determines how much savings you will need for retirement, you need to create a retirement spending budget. Your retirement spending budget determines how much savings you will need to pay for your retirement. You can adjust your retirement budget to allow yourself to retire with less savings and retire early.

Mathematical Formula

Green Retirement Planning is more than just an idea, or a method, it is a mathematical formula. Traditional retirement planning guesses, how much savings you will need for retirement, based on your current earnings. Green Retirement Planning calculates, how much savings you will need for retirement, based on how much you will spend in retirement. The Green Retirement Planning formula is accurate, simple, and very flexible. Giving you much more control over your retirement. The mathematical formula is:

Retirement = Spending / 3%

Where: Retirement = Your Savings, Spending = Your annual retirement budget, 3% = The amount you can safely withdraw each year from your retirement savings.

The safe withdrawal percentage ranges between 3% - 4.75%, depending on your age at retirement, the older you are the higher the percentage. I used 3% as the world-wide average. The safe withdrawal percentages are based on an asset allocation of 75% S&P 500 Index and 25% U.S Treasury Bonds. The percentages are calculated using the last 50 years of stock, bond, and inflation data, for the United States. They take into account the worst 30 year economic period, in the United States, insuring you don’t run out of money in retirement.

The United States economy, the last 50 years, has out-performed the rest of the world. That is why I use the lower 3% - to be safe. However, your country’s economy may out-perform the United States for the next 50 years, enabling you to have a higher safe withdrawal percentage.

You can also use the retirement calculator, on the Green Retirement Planning Website, to calculate how much retirement savings you will need. Simply ignore the dollar sign and enter your currency values. Instead of Social Security, enter the value of your country’s retirement program payments, and pensions if applicable. Voila, you have just discovered how much retirement savings you need, no matter which country in the world you live.

I live in the United States, and so the retirement website and blog, is written from the American perspective. However, you don’t need to be a U.S. Citizen, to take advantage of Green Retirement Planning. The principal, method, and mathematical formula behind Green Retirement Planning is universal.

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