Do You Think You Can Retire Comfortably With $1.27 Million?
Most of us working now wish we could retire immediately. The thought of no work and just living your life doing what you enjoy doing the most. No bosses to tell you what to do. No corporate companies telling you to do things you don’t want to do or adding unnecessary work to your already long list of responsibilities. But, do you have enough in savings to actually quit working and just say you’re in retirement?
Here’s What The Average Person Needs To Retire Comfortably
According to Northwestern Mutual’s 2023 Panning & Progress Study done, the amount needed to retire always goes up every year. Why? Because the cost of living goes up yearly as well as everything else.
According to the study, if you want to retire comfortably in 2023, you need at least $1.27 million in your savings to do so. That’s to retire comfortably. Meaning you live a fairly simple lifestyle and don’t spend money on unnecessary things. This number is actually up from last year. Last year to retire comfortably, they found you needed about $1.25 million.
Does It Change With Age?
Now, $1.27 million is for basically every age. But, if you’re in your 20s, you’re really only expected to have about $1.20 million in an account to retire. But if you’re in your 50s, you’re going to need actually more to retire comfortably. They’re saying 50-year-olds need about $1.56 million to retire. But, if you’re in your 60s or 70s, the amount expected for retirement is way less. Why? That’s because most people in those age groups are already in retirement. But still, those people need a significant amount of money to retire. People in their 60s need about $968,000 and people in their 70s, they need about $936,000, according to the study.
What Generations Will Be Most Ready To Retire
Believe it or not, Gen Z will be the most financially ready to retire when it’s their time. That’s because the older generations are more likely to see the worst part of retirement and will live life accordingly. Meaning they’ll spend more before retirement instead of saving for it. Meanwhile Gen X’ers believe they won’t be ready at all to retire when it’s time. And as for millennials and even Boomers, they believe they won’t be ready as well.
Where do you stand in this? Will you have enough to retire when it’s time? When it’s time for you to retire, the $1.27 million savings will definitely be higher. Will you have it?
We have more on this story and more in today’s edition of a Few Things You Should Know!