What are the Average Retirement Savings of Americans

Try ¬†looking at average retirement savings, you will notice that these numbers vary widely across the country. Average retirement goals generally include a certain amount of money allocated into investments of various kinds (like stocks, bonds, real estate, and other securities). Investments can also include cash reserves. Many people want to know how much they should have set aside to prepare for retirement age. This is an important question because if you have the right amount of money set aside then you can more easily enjoy your retirement and golden years. If however, you have not set aside enough money for retirement, it can be difficult to enjoy your retirement because you might need to work in order to pay the bills.


A Look at Average Retirement Savings in the United States

The ¬†typical retirement savings in the United States is generally between $100,000 and $400,000, though this is a broad range. Many, many people enter retirement age with less than $100,000 in the bank. This is a grim reality. With proper planning, you should be able to avoid entering your golden years with less than $100,000 in the bank. This is not to say that you cannot enjoy your retirement if you have less than this (below the average retirement savings), just that it might require you to take on additional jobs in order to make ends meet.

Realistic Retirement Savings

Everyone would like to have one million dollars set aside in the bank account for retirement. However, this may not be realistic. In order to determine how much money you are going to need to retire on, consider the following formula. Take a guess at what your monthly expenses are going to be when you retire. If, for example, your expenses are going to be about $2000 per month, then you will need about $24,000 per year in order to survive financially. If you expect to live an additional 20 years, you will need approximately $500,000 in savings to be able to afford your lifestyle of $2000 per month.

Most people never take the time to think about such things like average retirement savings needed, but it is important to do, especially as you near retirement age.

Talk with a good financial planner or retirement specialist if you think you might need assistance. A good financial planner can help you hit your financial goals more easily. If you have not been saving regularly and do not have investment account set aside, then it may be difficult to hit your financial goals at your retirement age. You may need to take on additional jobs as you go. Knowing the average retirement savings can help you to understand how far you are from your target goal.


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