According to a Northwestern Mutual study, in 2024 US adults believe they need nearly $1.5 million to retire comfortably. Yahoo Finance Senior Columnist Kerry Hannon joins Wealth! to break down the numbers behind retirement and why different generations seem to be at odds as to how much they need to retire comfortably.
#youtube #money #investing
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Retirement is a crucial phase of life which many people look forward to, yet often worry about due to financial uncertainties. A recent survey has revealed that the average American believes they need a staggering $1.5 million in savings in order to retire comfortably.
This figure may come as a shock to some, as it seems like a daunting amount to save up over the course of a lifetime. However, with increasing life expectancies and rising healthcare costs, it is no surprise that Americans are preparing for a potentially lengthy retirement period.
The survey also found that many Americans are worried about their financial security in retirement, with 67% of respondents expressing concerns about outliving their savings. This fear is understandable, especially considering that Social Security benefits may not be enough to cover living expenses for many retirees.
So, how can Americans ensure they reach their $1.5 million retirement goal? The key lies in diligent saving and investing throughout one’s working years. This means setting aside a portion of income for retirement savings, whether through an employer-sponsored 401(k) plan, an individual retirement account (IRA), or other investment vehicles.
It is also important to start saving as early as possible, as compound interest can significantly boost savings over time. By making regular contributions and taking advantage of employer matching contributions, individuals can build a substantial retirement nest egg.
In addition to saving diligently, it is crucial for Americans to plan for healthcare costs in retirement. Medical expenses can quickly eat into retirement savings, so having a comprehensive health insurance plan and setting aside funds for healthcare costs is essential.
Ultimately, the goal of $1.5 million for retirement may seem daunting, but with careful planning and disciplined saving, it is achievable for many Americans. By starting early, making smart investment decisions, and prioritizing financial security, individuals can set themselves up for a comfortable retirement in the future.
When you cite the average balance, is that per account or per person? Most people have money in multiple places.
Republicans want us to work until 70. Pay attention.
It's more about how much you plan to spend. Create a budget now so you know.
3 million after debt free
Most Americans rather buy a fancy car or a holiday than save and invest.
I'd retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $120K per year but nothing to show for it yet.
Roth IRA ,Roth 403b , HSA ,SS
Your "retirement number" is a lie perpetuated by the financial industry to keep you working and building up your portfolio as long as possible. The larger your portfolio, the more fees they can collect. Focus on your expenses, not your income. One year before retiring, calculate your total living expenses/budget for the year. Take that number and add in 15% to 20% buffer for incidentals and emergencies. Take that total and divide it by 0.8. That is you estimated minimum gross income needed in year 1 of retirement. Add in an annual COLA every year afterwards. You're welcome.
I retired at age 62 with nothing saved.
Ya'll enjoy yer wants now yuh hear?
$3 million in low-cost, well-diversified investments should give you a safe withdrawal rate of $90-120K annually for 30 years. This is nice as long as you don't have problems as a result of getting old like cancer, metabolic dysfunction (diabetes, cholesterol, blood pressure, weight), heart attacks, dementia, easily-scammed, physical limitations/weakness, etc. It's all health-related and we know how great the U.S. healthcare system is… at making you bankrupt, so add mental stress for you and your family, too. Might be better to plan for lower-cost retirement outside the U.S.
70% of the country considers death retirement
Just listen to "Show me the purse" song.
Democracy lol
The Senate Calls Out-Of-Control Spending A National Security Threat, Keeps Spending Anyway…
LETS GO BRANDOONNNN
What the hell is this crazy yo yo taliking about? There is no such thing as retirement anymore.
I recall an article in Money magazine from the late '90s saying the "new" estimate is $2.3 million to comfortably retire. So $1.5 million is a bargain.
300,000, retire in different country
With bidenomics, you'll need triple that to retire.
2.8 million
I need 10,000 XRP and XLM!! That’s all I need!!
Will go up forever 14 to 30 % a year
Buy bitcon
6 mil u need