Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
28% of Americans in their 60s are extremely short on retirement savings
28% of Americans in their 60s are extremely short on retirement savings
Though there's no magic savings number that guarantees financial security during retirement, as a good rule of thumb, it's smart to close out your career with about 10 times your ending salary socked away. The reason? Social Security will only replace about 40% of the income you're used to if you're an average earner. If you're a higher earner, it will replace even less. Meanwhile, most seniors need considerably more than 40% of their former paycheck to stay afloat financially, especially when we factor in health care expenses, which are likely to climb in retirement.
When I was in my 20s I took an investing class. I will always remember the teacher had a statistic that said only 25% of retirees can maintain their lifestyle. Nothing has changed.
Comments