How Much Should Retirees Have Invested by Age 65?

What's your magic number? That is to say, how much savings do you need to feel comfortable enough to retire from a paying job? Everyone's number is a little bit different, of course. But, whether they know it or not, everyone's got a number. Here's some insight on how to figure yours out.The average "right" number is $1.26 million, by the way. That's the average amount that annuity and insurance outfit Northwestern Mutual reports U.S. residents currently say they'll need to retire comfortably, down measurably from 2024's consensus of $1.46 million. It's not a bad guess, either. Assuming all of that amount is invested in ultra-safe government bonds currently yielding a realistic average of 3.5%, that's about $44,000 worth of annual income. While not a huge amount, when paired with Social Security payments at a time of your life where spending is a bit curtailed, that could work well enough.Most people aren't going to reach that seven-figure sum, of course, nor do they necessarily need to. Rather, future retirees might be better served by thinking in terms of maintaining their current standard of living. That's a much more approachable goal since everyone's lump-sum target will reflect their lifetime work-based income.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool