How much is enough? If you’re unsure about how much to save or how long your money will last, here’s everything you need to know about retirement finances. It can be trickier than you’d think!
Even though most of us have heard about the need to retire, statistics show that most of us aren’t doing anything about it.
A lot has been said about saving $1 million for retirement, but that might not be your magic number. In fact, it depends on your lifestyle. If you retire after saving $1 million, you’ll be living with around 40K per year for 25 years or so. On the other hand, if you want to spend 100K per year, you’ll have to save $2.5M. Yep, that hiked quickly.
The thing is, you have to be realistic when calculating your retirement goal. If you’re living with 150K per year, it’s quite unlikely you’ll feel comfortable living with 40K when you retire. In that case, you have two options: either you start living with the budget you want to retire with, or you increase your savings goal to achieve the lifestyle you’ve grown accustomed to.
On the other hand, inflation is a real thing. This means you not only have to save your earnings, but they also need to be invested with a steady return. If not, you’ll be losing money in the long run. I know this can be a bit complicated. Take a look at today’s infographic to find out everything you need to know about how you need to save for retirement.