You Need to Save Four Times Your Annual Income to Retire
About 36 percent of Americans have a nest egg of less than a thousand dollars and 60 percent have less than $25,000 saved, which means working people may not be saving enough to retire prosperously in their golden years. MainStreet's Juliette Fairley takes you through an important rule of thumb when it comes to making your retirement last beyond 25 years.
Retirement savings statistics are usually pretty depressing. For instance,a recent study from the National Institute on Retirement Security foundthat the median retirement account balance across all age groups is$3,000, and for those nearest to retirement, the median is only slightlyhigher, at $12,000. To add insult to injury, companies have quietly beenshifting their benefits packages for years now, making those paltrysavings account balances even more troubling when it comes to youngerworkers.
Only 72 percent of working Americans are contributing to their retirement accounts even though 93 percent know they should be saving, according to a Capital One ShareBuilder survey. Capital One Sharebuilder President Dan Greenshields says that financial stress is keeping 75 percent of Americans awake at night, especially those saving for their kids' college.
Want to improve your retirement plan's payoff? Increasing your employee contribution is simpler, and less costly, than you think. Smart401k president Scott Holsopple offers retirement investment tips on MoneyBeat.
Given that markets are operating in uncharted territory today, allocating to asset classes that probably weren't traditionally found in retirement portfolios may be appropriate, says Windham Capital Management CIO Lucas Turton.