According to the latest Bureau of Labor Statistics data, “older households” — defined as those run by someone 65 and older — spend an average of about $45,700 per year, or roughly $3,800 a month.
The general rule of thumb is that you will need between 70-90% of your income to maintain your current standard of living in retirement. With life expectancies on the rise, that amounts to a pretty penny you’ll need to have saved up…You could go decades without working. So exactly how much will you need to retire?
Start running the numbers and find out! It’s true there are some unknowns — like exactly how long you will live and if Social Security will survive, but generally speaking, the amount of money you’ll need to retire doesn’t have to remain a complete mystery. Luckily, there are online calculators and apps to help you figure it out. Many of them allow you to run different scenarios where you can adjust the age you want to retire and how much you’ll spend each month.
If you’re off track, don’t panic — just start saving!! Save as much as you can, as soon as you can, towards a comfortable retirement.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.