Retirement Guide: Are You Ready For Retirement?
The majority of retirement advisors say that your retirement income should equate to roughly 80% of your final pre-retirement salary. That suggests that if you are earning $100,000 annually during your last year before retirement, you will need an income of at least $80,000 per year to maintain a comfortable lifestyle after retiring. This amount can be adjusted up or down depending on other streams of income, such as Social Security, pensions, and a well-diversified investment portfolio.
According to CNBC*, 56% of Americans aren’t truly aware of how much they will need to retire and maintain their standard of living. The fact is that an alarming 22% of Americans have less than $5,000 in savings allocated for retirement.
Financial Analysts project that if you start saving at the age of 25, and want to retire at age 65 and maintain your standard of living, you need to put 10%-17% of your current income into a retirement investment vehicle. If you wait until 35 to start, you have to save 15%-20% of your income to retire by 65.
Here is a standard guide to follow to stay on track for your retirement:
By age 30: Have the equivalent of your salary saved
By age 40: Have three times your salary saved
By age 50: Have six times your salary saved
By age 60: Have eight times your salary saved
By age 67: Have 10 times your salary saved
https://www.investopedia.com/retirement/how-much-you-should-have-saved-age/How Much Do I have to Have To Save If I Want to Retire With $1 Million? (Per CNBC*)
If you start at age 25:
With a 4% rate of return, you need to earn $101,189 per year and save $843.23 per month.
With a 6% rate of return, you need to earn $59,957 per year and save $499.64 per month.
With an 8% rate of return, you need to earn $34,146 per year and save $284.55 per month.
If you start at age 30:
With a 4% rate of return, you need to earn $130,893 per year and save $1,090.78 per month.
With a 6% rate of return, you need to earn $83,809 per year and save $698.41 per month.
With an 8% rate of return, you need to earn $51,967 per year and save $433.06 per month.
If you start at age 40:
With a 4% rate of return, you need to earn $232,629 per year and save $1,938.57 per month.
With a 6% rate of return, you need to earn $172,300 per year and save $1,435.83 per month.
With an 8% rate of return, you need to earn $125,344 per year and save $1,044.53 per month.
https://www.cnbc.com/2019/08/22/salary-needed-to-save-10-percent-of-your-income-and-retire-with-1-million-dollars.html
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