Dreaming of a comfortable retirement is something most Americans share. But how much money do you need to make those golden years truly golden? According to a recent survey from Northwestern Mutual, the average person thinks they need $1.46 million. That’s a pretty hefty goal! While a million dollars has long been the goal for retirement savings, the truth is that many people are starting from scratch. But what about those with a significant amount saved? Let’s talk about the $500,000 club.
Do not miss it:
Believe it or not, according to the 2022 Survey of Consumer Finances, only 9% of U.S. households have saved half a million dollars or more for retirement. That’s right, fewer than one in 10 families have reached that milestone. It’s an impressive feat, but it also highlights the challenges many people face.
-
According to the results of the study, 46% of households have some form of pension savings.
-
26% reported having $100,000 or more set aside.
Also see: How much money is paid out each month on a $200,000 annuity? The numbers may shock you.
Saving $500,000 may sound like a lot of money, but is it good for a comfortable retirement? The popular 4% rule suggests that you can withdraw 4% of your savings each year without draining your nest egg. For a $500,000 nest egg, that works out to $20,000 a year. Sure, it might cover some expenses, but for many people it’s unlikely to sustain your pre-retirement lifestyle.
Fortunately, there’s more to retirement income than just savings. Social Security benefits can provide a steady stream of income, and part-time work or rental housing can help supplement your retirement funds. The average Social Security benefit runs about $1,827 per month, up to about $22,000 per year. Combine that with the $20,000 in savings and you’re looking at about $42,000 per year. This can help cover basic living expenses, but it can still be tight for some.
Trending: This Multibillion-Dollar Fund Is Investing In The Next Big Real Estate Boom, For example, you can become a member for $10.
Interestingly, according to a survey by Go Banking Rates, nearly 40% of Americans believe they can retire comfortably with $500,000 or less. While it is possible for some, it is important to have a realistic retirement plan. If you are aiming for a more luxurious lifestyle, you will likely need to save more.
Whether you’re just starting to save or are already on your way to $500,000, every dollar counts. Contributing regularly to retirement accounts, taking advantage of employer contributions, and exploring other investment options can make a big difference.
And for those who have already reached the half-million dollar milestone, congratulations! You are in elite company. But remember, retirement is a long road. Keep saving, investing wisely, and planning for the future.
The bottom line? Saving for retirement takes time and discipline. By understanding your financial goals and taking proactive steps, you can increase your chances of a comfortable retirement.
Read more:
“SECRET WEAPON FOR ACTIVE INVESTORS” Boost your stock market game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Want to receive Benzinga's latest stock analysis?
This article Can You Guess What Percentage of People Have $500,000 Saved for Retirement? Shockingly, It's Probably Less Than You Think originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
