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key takeaways
- New research by Northwestern Mutual released on Monday suggests that Americans feel that the “magic number” of funds required to retire has been saved by $ 1.26 million.
- About one -fourth of Americans who have retirement savings, said that they have saved their current income for one year or less for retirement.
- But Fidelity Investments show that by the time you become 67 for retirement, your annual salary is saved by 10 times more, as so many variables are included in the cost of retirement.
Thinking about retiring means how much money you need to retire comfortably, and a new study shows what Americans answer.
According to new research by Northwestern Mutual, Americans feel that the “magic number” $ 1.26 million has been saved to retire. Most people said that they do not think they would feel financially prepared when the time comes. The number of this year is about $ 1.46 million lower to $ 200,000 less and is about the flat with estimates from 2022 and 2023.
However, almost a quarter American who has retirement savings said that they have only one year or less of their current income saved for retirement. According to Northwestern Mutual, more than half of Americans feel that they will underline their savings.
With retirement based on so many factors – how much your annual salary and living expenses add to what your property adds, when you retire and inflation – it can be difficult to plan and save for unknown. As a rule of thumb, Fidelity Investments suggests that by the time you become 67 years old, it suggests saving your annual salary 10 times. If you plan to retire before or after, there is a number of ups and downs, but the financial services company suggests that your annual salary should be saved by the age of 30.
However, data from Northwestern Mutual suggests that about half of General X (currently 45–60 years) states that they do not have more than their current annual income more than three times, and the majority also say that they will need to work in retirement for additional income.
There is an opposite, however, as the reports of Americans that they are saving soon, are first planning to retire, and are expected to live longer than the previous generation. More than 60% of General Z feels that they will be financially prepared when it comes to retirement, a high part than General X and Millennials.
