If You Want To Retire In The Top 10%, Experts Say You’ll Need At Least This Much Cash

No matter what age range you’re in, chances are you’ve at least started thinking about your retirement. It’s a source of aspiration and/or stress for almost all of us, and it can be difficult to determine whether we’re actually saving enough to last us throughout our golden years.

But experts say there’s a figure you should shoot for if you want to join the ranks of the top 10%.

Not quite a “magic number”

The cost of living and other economic factors vary greatly from one region of the country to another, so there’s no dollar figure that will meet everyone’s retirement goals. Nevertheless, one number emerges time and again as the minimum threshold for leaving the workforce in a better position than 9 out of 10 of your peers.

Ample data supports the advice that your goal should be $2.5 million. One of the most compelling reasons to strive for this amount is that it will be enough to account for most age-related expenses as well as the impact of inflation.

Furthermore, financial advisers recommend withdrawing no more than 4% of retirement savings each year, and $2.5 million will provide, on average, annual income of roughly $100,000.

Easier said than done

Now that you’ve got the goal, how are you supposed to achieve it? For most of you, $2.5 million probably sounds like an absurd sum … but with some smart budgeting between now and the time you retire, it just might be possible.

• Begin saving as early as possible and contribute to your account regularly
• Ensure that your investments are diverse enough to weather any market storms
• Cut out your unnecessary expenses and live below your means

These steps and personal advice from a trusted consultant can help you reach your retirement goals.

Chris Agee August 21st, 2024

Share this story: