How to Save $1 Million for Retirement
Sleeping in late, traveling as you please, no more performance reviews... what's not to love about the idea of retirement?
Although for most people retirement is the ultimate goal, you're not alone if you don't know how, if, or when you'll be able to retire. Saving money to support your family through retirement can seem daunting, but as we always say, anything can be achieved if you make a plan! The key is to start thinking about it now and not pushing it aside as something that you will focus on later.
Preparing for retirement can easily be pushed into the “someday” category, as we focus on present needs and expenses. In fact, very few Americans have a plan for retirement savings that is adequate for their desired standard of living after they retire. As part of America Saves Week, an annual celebration as well as a call to action for everyday Americans to commit to saving successfully, our focus is to encourage you to save today for tomorrow and discover just how much you need to save for their golden years. As one of the thousands of participating organizations supporting this effort, together we are hoping to encourage our local communities to do a 'gut-check' on their finances and saving behaviors.
No matter your age, saving for retirement requires having a plan outside of only contributing to your employer’s 401K plan. We encourage you to create an account on socialsecurity.gov to see what your current estimated monthly benefits will be at the age you retire.
While everyone's retirement goal is different, let's assume your goal is to have $1 million dollars saved for retirement. Sounds great, right? It's an easy, round number to plan for and should be enough to support most people in their retirement years. Talk to your financial adviser about your specific goals, but for the sake of generality, let's assume your goal is to save $1 million.
Let's also assume that you have $0 saved right now, and that you're able to achieve a 6% annual rate of return on your retirement investments. Based on those assumptions, here's how much you need to save each month in order to retire with $1 million.
Don't be intimidated if those numbers seem large! You're not out of luck if you can't put away quite that much each month. In fact, you can calculate your own million-dollar retirement plan using this calculator.
The moral of the story is: save early and often. There's no magic number for retirement, but the more you have saved, the more comfortable you will be.
Looking to beef up your retirement savings? Here are a few tips to get started:
Take advantage of your company's 401k match.If your employer matches a certain percentage of your 401k contributions, do not pass up this free money. We repeat: free money! Your take-home pay may be smaller, but you'll be doubling your retirement savings. Not sure if this is available to you, or how to get it? Talk to your HR or your payroll specialist. Save any surplus money.Any unexpected money - birthday checks, income tax refunds, a bonus - should go into your savings. If you don't need it right away, it's better off growing and accumulating interest. Use SSB's mobile app to deposit your check right away! Just snap a picture and the money will go into your bank account. Boost your income.Whether this comes in the form of a raise, a promotion, a part-time job or a side hustle, additional income will make saving faster and easier. Here are some low-commitment ways to make more money: rent your spare bedroom on Airbnb, walk dogs or pet sit, sell your skills on Fiverr, drive for Uber or Lyft, or help others get things done with TaskRabbit. Always do your research before committing to any of these programs, but the options are out there. Make saving a habit.Your daily life can trigger you to save money. Here are five more ways to save more money on a daily basis! |
Pledge Your Savings Goal
Commit to the America Saves pledge at one of our branch locations by filling out a pledge badge with your savings goal. All week, we will be showcasing our customers' savings pledges in our lobbies. While you're there, we'd love to talk with you about the fantastic products and services that we offer that can help you achieve those goals.
We're happy to help you save for retirement, and earn interest on your savings.
Stop in or contact us online to talk about securing your financial future or to learn more about our products and services!
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