If you’re like most people, you’d love to retire by age 67 at the latest — and you’re likely far from making that happen. In order to retire comfortably by any age, you need to build up a solid nest egg. Your retirement savings need to not only keep you afloat, but also afford you the lifestyle you desire, which is a tall order, for sure. To help you get your finances in order, here’s an in-depth look at how much you should actually save for retirement.
Savings Goal to Hit by Your Retirement Party
As the balloons and confetti falls from the ceiling at your retirement party, you should have somewhere between $500,000 and a cool million socked away in your preferred retirement account. The exact total you should have to live comfortably and enjoy your preferred lifestyle depends on your pre-retirement salary. Many experts recommend you multiply your top annual salary figure by 12 to find your personal savings target. Then, work hard to blow past that goal well before your golden years arrive.
Ideal Retirement Savings Levels by Age
Although you should work to live, not live to work, you still have to think of how you will bankroll future you. You can enjoy the best of both worlds by saving money early and often, exceeding the following savings and growth targets for each decade:
- 20s: $30,000
- 30s: $61,000
- 40s: $185,000
- 50s: $310,000
- 60s: $450,000
To achieve the steady growth shown above, put your retirement savings in a safe and secure investment account that promises reliable returns of about 7% or so. Avoid the urge to YOLO it all in risky investments, which are more likely to leave you wholly destitute than an easy millionaire.
Ways to Boost Your Retirement Savings Balance
As your money grows, keep adding to it to create the biggest nest egg possible by your target retirement date. If your regular income doesn’t leave much left over for retirement, you can find gig work that fills the gap.
Popular entry-level gigs include:
- Food delivery
- Personal assistant
- Drop shipping
If you have experience in a particular industry, you could branch off on your own and offer your services as an independent worker in the gig economy.
You can also bump up your monthly savings numbers by paying your retirement account before all other expenses. As the money falls into the account, there it stays unless you want to get hit with penalties. That way, you can keep wild spending from getting in the way of building the nest egg you need to live comfortably in your golden years.
You are never too young to start saving for retirement nor is it ever too late to open an account and add all you can to it. So, no matter your age, take the leap toward reaching your retirement goals by opening an account and putting money into it each month. Even if you start with just $20 a month, watching your balance grow will inspire even more contributions, helping you achieve your goals fast.
About the Author: Marie Abendroth is a skilled content strategist and SEO copywriter who has been a proud part of the gig economy for over 10 years. In her articles, she aims to provide up-to-date info that can help everyone achieve their goals as an independent worker. You can find her on WriterAccess.