over time the rule that you must have $1 million saved up to be able to retire has been processed. However, to this day, this theory seems outdated.
A survey conducted by specialized financial website GoBankingRates showed that 38% of Americans said they need $500,000 or less to retire.
The report also showed that another 30% think they can retire with between $500,000 and $1 million, and another 14% think they need $1 million to $5 million to secure a comfortable retirement.
The question that arises before the dominant majority is $500,000 or less in savings you really need fulfill the golden dream of retirement.
Experts advise choosing a target retirement amount based on your individual circumstances, not general ones. This was stated by the founder of the site Childfree Wealth Jay Zigmont. what is needed is an equation based on spending, retirement age, life expectancy, and investment assumptions.
To calculate how much it will take, you will need to know how much it will cost you to maintain your desired standard of living, plus a pension contributionsaid.
Cardinal Retirement Planning investment advisor Anessa Kustovich said that in some cases “You may be able to comfortably retire with $500,000, but other times you need almost $2 million.
Another recent study showed where $1 million could last the longest, taking into account factors such as the annual cost of groceries, housing, utilities, transportation, and healthcare.
In states like Mississippi, it was concluded that one million could last 25 years, but in cities like New York, the picture is different, where the cost of living is much higher.
Another aspect to take into account is current cost of living derived from inflation, which reached 8.3% year-on-year in Augustcompared to 8.5% in July and 9.1% in June, two of the highest rates in 40 years.
An analysis of the Wealthcare financial platform showed that by the time Generation Z and millennials retire, they will need between $120,000 and $150,000 a year to live comfortably. That would equate to $3 million to retire in the US, or triple the $1 million rule.
Source: La Opinion
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