Retirement can be one of the greatest pleasures after so many years of work. Although in recent years many questions have arisen about how much money is really needed for retirement and whether early retirement is possible or not.
While some have set a retirement threshold of $5 million to $10 million, any amount will depend on the financial cushion and lifestyle of the pensioner, since estimates are not suitable for all cases.
Dennis Nolte, Vice President and Financial Advisor at Seacoast National Bank of Florida and a Certified Financial Planner, recently noted that “There are many ways to work on forecasts, and no amount should be taken lightly. because $2 million or $5 million might be too general and counterproductive for most Americans.” said.
In this sense, the ideal and most recommended by financial planners is to take into account the expectations, dreams and desires before retirement, so that savings goals will meet these standards.
Dana Anspach, CEO of investment advisory firm Sensible Money, LLC, said that by advising future retirees, “We’re trying to remind them that they’re saving for the future. There are not so many negative consequences of excessive saving, but the consequences of too little savings can lead to decades of struggle,” he said.
Thus, setting a ceiling can be very negative, even Harvard economist Lawrence Kotlikoff noted that currently The average American doesn’t save enough for a traditional retirement and therefore it seems illogical to him that they do this for earlier seizures. “We have lousy savings, which makes early retirement unaffordable,” the specialist said.
Anspach presented an analysis in which he points out that if a person’s goal is to retire at age 66 and maintain an income, for example, $40,000 a year, you will need to put aside 10% a year of what you earn.
Serina Shew, a certified financial planner at Jon Baker Financial Group in Atlanta, says that “when it comes to savings, people rarely pay attention to the target number. It’s more like how comfortable you want to be in retirement. and how much money will be required to provide this comfort,” he said.
Source: La Opinion
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