Here's How Much You Should Have Invested for Retirement at Age 60

Saving for retirement is not easy. The cost of living has soared in recent years, and living on Social Security alone will likely be difficult. That's why most people should start saving as soon as possible. Individual Retirement Accounts (IRAs) or 401(k) accounts are good ways to build your retirement savings because both offer special tax advantages. However, even when using such vehicles, it's a good idea to keep tabs on how you're doing at different stages of your life. How much should you have invested for retirement at age 60? Let's take a look.Roughly 71.5 million employees in the U.S. had 401(k)s at the end of 2023, and roughly 55.5 million had IRAs as of mid-2023, according to various studies.401(k)s let full-time employees contribute a portion of their pretax salary to their employer-sponsored retirement accounts, and employers also have the option to contribute through some kind of match. IRAs are retirement accounts at brokerages that people can contribute to with pretax dollars up to a certain amount, meaning they can deduct those contributions from their annual earnings. However, IRA withdrawals are subject to income taxes. A Roth IRA allows people making up to a certain amount of annual earnings to contribute after-tax dollars, but then future withdrawals are tax-free, provided you meet certain requirements.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool