Amy wants to retire at age 67, so she will need to have saved 10x her preretirement income. John plans to retire at age 65, so he would need to have saved at least 12x his preretirement income. Of course, you can’t always choose when you retire—health and job availability may be out of your control.
But for a retiree to generate $40,000 a year after stopping work, he or she will need savings of about $1.18 million to support a 30-year retirement; this was calculated using average returns of 6 percent and inflation at 2.5 percent, according to Morningstar, a Chicago-based investment-research firm.
So, how much do you need to retire by age 65? Some organizations including AARP recommend saving between $1.2 and $1.5 million to support a 30-year retirement , and if you are hoping for a magic formula or number, there isn’t one.
(Even that is more than what many retirees have actually saved. The average retirement savings is about $104,000 for households with members ages 55 to 64 and $148,000 for households with members 65 to 74 years old, according to an analysis by the Government Accountability Office.)
Using this retirement calculator First, enter your current age, income, savings balance and how much you save toward retirement each month. That’s enough to get a snapshot of where you stand.
Health Care – Medigap Plans or Medicare Advantage? Medicare benefits begin at 65, which make …
How Much Income Will You Need In Retirement? (Spouse) Current gross income: $ Years until …
We then assume you can live comfortably off of 85% of your pre-retirement income. So if you earn $100,000 the year you retire, we estimate you will need $85,000 during the first year of retirement.
A lot goes into figuring out how much money you need to retire, but one common piece of advice is that you need about $1 million — and some sources suggest even more. In fact, 16 percent of people believe you need at least $2 million, according to a recent Transamerica study.
49 rows · If you were born in 1942 your full retirement age is 65 and 10 months. If you start receiving …
|IF YOU START GETTING BE…||AND YOU ARE THE: WAGE E…||AND YOU ARE THE: SPOUSE…|
|62 + 1 month||76.3||35.6|
|62 + 2 months||76.7||35.8|
|62 + 3 months||77.1||36.0|