How much money should you really be saving for retirement? It’s a loaded question that we ponder more and more as we get older, but as it turns out, there is a “magic number” at which we can retire comfortably.
The average American estimates they’ll need about $1.7 million for retirement, according to a recent study by Charles Schwab, which experts say is a pretty accurate estimate. But unfortunately, it doesn’t mean everyone will actually save that much dough.
More than half of participants polled are contributing 10 percent or less of their salary to their 401(k), reports USA Today, with an average annual contribution of $8,788. That’s a good start if you begin contributing to a retirement fund when you’re in your 20s or 30s, but for those who start contributing at age 45 or older, you’d need to contribute about 35 percent of your annual salary to reach $1.7 million by the time you’re ready to retire.
It’s a daunting number for sure, but totally doable if you play your cards right! And whether you’ll remain in the workforce for a while or are nearing retirement yourself, stop by Garmany; we can dress you for the office or any other occasion in the finest luxury clothes and accessories for men and women.