USAA Tips: How to know if you're saving enough for retirement

Content provided courtesy of USAA

If you are on the verge of retiring, it's understandable to question whether you have adequate savings to live comfortably.

USAA financial advisors recommend following the general rule of saving 10 to 12 times your salary, but individual circumstances may require more or less. You may want to see if you're on track by accessing an online calculator.

Here's another simple method to check whether you're in good shape or likely to come up short:

1. Identify your assets.

Figure out which of your assets are most likely to be available to generate income once you retire. Those might include IRAs, a 401(k), savings accounts or other investments. Be sure to allow for any legacy or bequest wishes.

2. Make a cash-flow plan.

Identify reliable income sources you expect to have during retirement, including Social Security, pensions, annuities or other guaranteed payments. Factor in your expenses, separating essential ones (such as housing, transportation and health insurance premiums) from discretionary ones (such as movies, travel and gifts).

3. See if there's a gap.

Generally, you should have enough income to cover your essential expenses. If not, you may be dependent on the resources you identified during step 1 to make up the difference.

Your retirement plan should reflect your unique circumstances. Keep in mind that good retirement planning is an ongoing process, so you will need to review and adjust your plan periodically.