Car & Auto

Oct 17 2017

Average Retirement Savings by Age #which #savings #account #is #best #for #me


#

Complete Average Retirement Savings by Age Guide

Saving for retirement is something that many people put off until it becomes difficult for them to make up for lost time (and money). In order to avoid finding out that you do not have enough to get by (or simply maintain your standard of living) in your “golden years,” it is important to know exactly where you stand and where you should be financially in order to make any necessary changes as early as possible.

By taking the time now to find out how much you will need to have saved and figure out what you have to do to get there, you can have peace of mind that your financial future is as secure as possible.

Average Retirement Savings by Age

Income and savings can be taboo subjects that many people avoid asking about or discussing. This can make it difficult figure out if you’re on the right track or even in the right ballpark. Thankfully, there are organizations that research and analyze anonymous financial data to determine and report on and the state of salaries, expenditures, savings, etc. It is important to note that the following statistics represent the current state of workers’ retirement savings and do not represent the ideal or target level of savings for each age group.

TransAmerica s 2015 Annual Retirement Survey (based on 4500 online interviews) found that the median total household savings by age were as follows:

The following chart compares the actual savings found by TransAmerica with the recommended amount based on the savings factor and an average income of $52,000:

If you look at things from the standpoint of their savings accounts, it is obvious that many will not have a large enough nest egg to even meet basic expenses (if they expect to live anywhere near 15 years after retirement). Many others will live close to the poverty line .

Of course pensions and Social Security are two other primary sources of retirement income, but both have seen shrinkage in the last few years. Even when these factors are considered, the statistics suggest most people should save more to ensure that they will still be able to enjoy their senior years. Add to this that the life expectancy for someone retiring this year could be as high as 85 for men and 87 for women (currently 79 and 81 respectively) and you have an additional 6 years of retirement you might need to save for. It might be helpful to note that the average retirement age is currently 62 and a typical length of retirement is 18 years.

The Employee Benefit Research Institute (EBRI) publishes an annual report of their findings from their Retirement Confidence Survey. The survey came to two main conclusions: that Americans are living longer on average and that they don t have enough saved up for retirement.

According to the 2015 report, 28% of workers have less than $1000 saved:

15 thoughts on Complete Average Retirement Savings by Age Guide

My wife is 57 and I am 54. Together, our combined retirement savings add up to a little over $600,000 which is split between Roth IRAs, 401k and 403b. We have consistently put away an average of 20% of our income for the past 20 years. If we retire at 62-65, our Social Security and pensions will provide approximately $48,000 annually. I used to think that our savings would be enough, but based on the situations I see others in, I m not so sure. I feel that it might not be enough to cover medical costs, possible long-term care and the effects of inflation.

I think I read somewhere that someone in my situation should have $1.5 million+ saved up. This is basically impossible in today s market. I guess there are always the options of postponing retirement and downsizing. My question is how in the world are 60 year olds going to survive when they have a tenth of what we have saved up?

Jacob I am 50 but understand your concern. My financial planner opened my eyes not long ago when we were talking about retirement. He pointed out that I don t play golf, I don t drink, I don t do many other cash consuming events and I don t see myself ever sitting around the house tapping my foot.

When he asked me What does retirement mean to you? it was an awakening. I had pictured the standard gold watch, sitting around reading the paper and waiting for my next meal at some buffet place. Then I realized that was not what I wanted anyway. Retirement would be doing things that earn money that I really want to do. With that I started retooling two years ago on my weekends for some dream jobs (Coaching, mediation and possibly becoming a realtor). These are things I always wanted to do and it is part time enough that I have a purpose without the prison. It feels nice to do something proactive about the prospect of retirement rather than hold my breath. In my case hope is not a strategy.

Jacob, if you save $15,000 a year for the next 10 years, earning 6% a year, you will have $1.2 million. If you can, work to 65-67. There are some things to know about when you start Social Security, having one of you claim and then postpone taking it, or taking half of the older one s social security, etc. I don t know all of the tricks but you do sound like you will actually be in good shape if you make a few right choices. You might want to look for a financial advisor that charges hourly or flat rates.

Your math is off! 15,000 for 10 years saves you 150,000. How does 6% compounded get you $1.2M?



Written by admin


Leave a Reply

Your email address will not be published. Required fields are marked *