Planning for a Comfortable Retirement: How Much Money Do Couples Need?
- Author: Jessica Williams
- Posted: 2024-08-29
Planning for retirement is a common aspiration for many working individuals. It is also a dream for couples who want to spend the rest of their life together in comfort.
There are many ways to enjoy retirement. Some go on long vacations around the world, while others choose to live a quiet life at home surrounded by loved ones. Regardless of how you spend your retirement, it is the best time to enjoy the fruits of your years of labor.
However, constant changes and economic shifts make saving more complicated for some. These challenges can lead to drawbacks in retirement savings.
Current Savings Statistics
As of 2022, a report by the Federal Reserve reveals that 35-year-olds and younger have about $49,130 saved for retirement. Meanwhile, older individuals (55- to 65-year-olds) have an average of $537,560 in their retirement accounts.
Although these figures might appear substantial, rising living costs and their impact on retirement finances must be considered alongside people's ideals and expectations of a "comfortable" retirement lifestyle.
Perceptions of Retirement Wealth
A survey by GOBankingRates found that both young adults (aged 18 to 24) and older adults (aged 55 to 64) agree on what it means to be "rich."
Approximately 24% of Gen Z and 27% of younger baby boomers believe that more than $5 million is required to retire with wealth.
Regardless of age or perception of retirement wealth, effective retirement planning is the only way to achieve an ideal and comfortable retirement.
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Strategies to Build Retirement Wealth
Financial experts at Fidelity Investments and Charles Schwab offer tips on how to achieve a financially prosperous retirement. These tips also apply to couples aiming to fulfill this shared goal.
1. Start saving early and be consistent
2. Invest across diverse options
3. Develop and follow a complete financial plan
4. Do not withdraw early from your retirement savings
5. Get advice from a finance professional
Through smart decisions and up-to-date financial information, individuals and couples can make enough money to support a comfortable and fulfilling retirement.
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