How Much Money Should You Be Retiring With?
In the U.S. the average retirement amount is a lot more than you may think it is. Many experts say that working adults plan to have 70% to 80% of their pre-retirement income to use in retirement. Despite there being a guide telling you that you should have a certain amount saved, in reality, that is not always the case.
It depends on a number of factors including what type of lifestyle you want to live, what car you want, what house, what vacations. Therefore, it will be different for everybody.
Do you have enough money for retirement?
The average retirement age in the U.S. is around 64 years old, although this age also varies by state. In West Virginia, the average age is 61 years old, whereas in Washington D.C. it is 67.
The age you retire will also impact the amount you have saved, but just because you retire earlier than somebody else, doesn’t always mean you will have less money than they do save up.
Another factor that comes into play in the category of ‘age’ is life expectancy. This also varies by state. The highest being Hawaii with an expectancy of 81.3 years and the lowest Mississippi at 74.7 years old.
Every time the life expectancy number increases so does the retirement age. Therefore it is easier to understand that you may be working a lot longer than other relatives.
Money For Retirement – U.S. Average
The National Institute on Retirement Security states that around 40 million U.S. households have nothing saved for their retirement at all. The Employee Benefit Research Institute states that overall Americans have an estimated retirement savings deficit of $4.3 trillion. Meaning that all U.S. households have $4.3 trillion fewer in savings than they should have for retirement.
According to research from Boston College, the percentage of retirees in 2020 who are at risk of not having enough is about 50%. Therefore, this is why it is better to start saving for retirement at a younger age. And, this despite the fact that average retirement income 2020 is up in some categories.
America’s Retirement Savings Gap
In America, there is inequality between the retirement savings of those who have a higher income and the ones who do not. People with higher incomes are more likely to have more money saved for retirement. On the other hand, those with the lowest income have no savings at all.
The retirement savings gap can be helped by employers helping more employees meet their retirement savings needs by taking these steps:
- Calculate the gap between what employees are saving and retirement needs.
- Create targeted messages to employees, communicating appropriate savings targets for each group.
- Consider noncontributory employer contributions to help provide retirement income for low-income workers unable to save enough to meet a full 401(k) match.
For more information on America’s savings gap visit ‘Mind The Gap‘.
How Much Money Do I Need For Retirement?
As mentioned previously, this amount changes for everyone due to the differences in lifestyle. Besides the usual healthcare, housing, transportation, and food, everybody’s retirement amounts will be different. But there are plenty of ways which make it easy for us to estimates how much we should be retiring with. To help you understand how much you will need or be comfortable with, the best thing you can do is find an online calculator. All you need to do is insert a few details. After this, it will give you a rough guide of how much you will need.
Not having money saved for your retirement can be worrying. But, it is a process that is to be made gradually. Therefore, you should not be putting all of your money into a retirement fund and then having non left over to spare for yourself. Here at LoanPigsUSA, we can help match you to a lender in your state. To do this we only need some information from you. Payday loans should only be used for emergencies in the states which allow them, find out more here.