You probably have asked yourself, “How much do I need to retire?” And there are plenty of calculators online to help you figure that out. But is anybody coming anywhere near the numbers it takes? Not really.
Fidelity Investments recently posted that a 65 yr. old couple will need $250,000 just to pay for medical expenses over and above what could be covered by Medicare.
Bank of America reported that 57% of workers who have $50,000 to $250,000 in household assets plan to push back their retirement, citing health care costs as their top financial concern.
The fact the “Forever Young” generation is working longer into life might say more about lack of savings than feeling young for their age. The financial collapse of 2008 blew up savings plans, and low rates on fixed-income investments have had a hugely negative impact on financial plans.
As a result, a 65 year old couple who want a retirement income of $6000 a month will need $1.5 million in savings and another $250,000 for retiree health care before they retire.
So How Much Do You Need To Save Each Month?
To Save $500,000 -
You need to Save $3,200/Month for 10 years or $1,200/Month for 20 years
To Save $1,000,000 -
You need to Save $6,400/Month for 10 years or $2,400/Month for 20 years
To Save $1,500,000 -
You need to Save $9,600/Month for 10 years or $3,600/Month for 20 years
Even if people end up discouraged, as many are, they are more aware of the need to save and plan and this is now a Top Priority!
Make it a great day!