Money for retirement is a concern for people, especially as they get closer to the age of 40. Unfortunately, most people aren’t actually prepared for retirement. Some people have a minimal amount in savings, if any. It’s important to learn early how much a person should have and if they’re getting closer to reaching their goals.
Close to half of all families don’t have any savings stashed for retirement, as noted by the Economic Policy Institute. On average, a family has only $5,000 stored for retirement, but some families have up to $60,000. A survey revealed true totals of how much Americans had saved. Surprisingly, 35 percent of all adults throughout the U.S. only had several hundred in their savings. On the other hand, 34 percent didn’t have any. Basically, only 31 percent of participants could have possibly had enough savings.
Even more shocking, older Americans aren’t even close to being prepared for retirement. Statistics provided by the Economic Policy Institute indicated those between the ages of 50 and 55 years old aren’t prepared. The median savings was only $8,000. For people between the ages of 56 and 62, the average savings was $17,000.
How Much Should Someone Have
By the time someone reaches the age of 30, he or she should have their yearly salary in savings. In words, someone who makes $60,000 should have $60,000 in his or her bank account. At the ages of 35, the person should have twice his or her salary. Once a person reaches 40, he or she should have three times his or her salary. People who are 45 should have four times their salary saved. Someone who is 50 should have five times their salary. Six times a person’s salary is ideal for someone who is 55. By the age of 60, someone should have seven times their salary in the bank. At the age of 65, a person should have eight times his or her annual salary saved. This is just a suggestion since different experts state different figures.
One way to achieve a person’s financial goals is through investments. One option is to buy stocks. Although it’s possible to lose money investing, a person may invest and grow his or her money quicker with stock than with a standard savings, money market, or IRA.
A person can reach their goals by determining a savings plan. For instance, a person can plan to add a certain percentage of their income each month. It helps to add additional money than just what a person intends.