How Much Money Do You Need for Retirement

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Retirement Money

How are your retirement plans coming along? | iStock.com

How Much Money Do You Need for Retirement

There’s a knowledge gap surrounding allِ things retirement.
If itِ were easily comprehensible, Americans wouldn’t devote soِ muchِ time andِ stress learning howِ to properly prepare forِ it.
Many areِ unaware ofِ what itِ truly takes toِ save forِ retirement orِ howِ to getِ started inِ the firstِ place.

1.
Roughly how much do investment professionals estimate people save by the time they retire?

What’s worse isِ 25% — 19% ofِ those ages 55 toِ 65 — thought onlyِ two toِ threeِ times ofِ their mostِ recent annual income wouldِ beِ sufficient forِ retirement.
The correct response: Fidelity estimates weِ shouldِ beِ saving “at leastِ 10 times theِ amount ofِ one’s lastِ full year’s income.” For example, ifِ your salary atِ age 35 isِ $65,000 annually, youِ shouldِ haveِ aboutِ $650,000 inِ retirement savings beforeِ you start making plans forِ a life inِ the Florida Keys.
Think ofِ itِ asِ giving yourِ future selfِ a hefty raise everyِ few years.

Most people severely underestimated how much they’d need to save. | iStock.com

5. Approximately how much did the average monthly Social Security benefit pay in 2016?

About 43% overallِ answered thisِ correctly, andِ half ofِ the 55 toِ 65 age group gotِ it right.
You’ll receive theِ highest monthly payout ifِ you wait untilِ your full retirement age toِ withdraw.
About whatِ percentage ofِ your savings doِ many financial experts suggest youِ withdraw annually inِ retirement.

7.
What do you think is the single biggest expense for most people in retirement?

What theِ survey said: Let usِ guess: You answered health care asِ the biggest retirement expense.
1 item respondents wereِ mostِ worried aboutِ being able toِ afford throughoutِ retirement.
Medical costs comeِ in atِ roughly 12% ofِ total retirement expenses.

How to start saving for retirement today

Investing in stocks can help pad your retirement. | Pixabay

So spend a fewِ hours hereِ andِ there learning aboutِ your needsِ andِ how toِ increase yourِ wealth overِ time.
It’s hard toِ knowِ where youِ stand onِ the retirement spectrum becauseِ every person hasِ a unique vision andِ varying circumstances toِ account for.
Although boosting yourِ retirement IQ isِ anِ excellent firstِ step, Ken Hevert, senior vice president ofِ Retirement atِ Fidelity, says, “The majority ofِ investors needِ to haveِ a diversified portfolio thatِ includes equities toِ enable growth overِ time.

Saving a little can go a long way in retirement. | Fox Photos/Getty Images

The key to making your savings last is to start saving early. | ABC