How Much Money Is Enough to Retire at 65

For many people, retirement is a terrifying thought. After all, it’s hard to know how much money you’ll actually need until you need it. If you plan to retire at the age of 65, there are a few things that should be considered. Let’s take a closer look at how much you should save in order to retire at 65. 

Financial advisors generally recommend that people have a minimum of 8 times their annual salary saved up by the time they are 65 and plan to retire. For example, if you earn $100,000 a year, you should have at least $800,000 saved to meet all of your basic needs post-retirement.  

Generally speaking, the average person should have around $1.5 million saved to live a comfortable lifestyle. This should cover rising costs, unexpected expenses, and a better quality of life. 

Obviously, there are various factors that affect how much money you spend in retirement, including the size of your family, your location, and the type of lifestyle you are accustomed to. 

Politics also plays a major role in how much money you will need to retire comfortably. For example, Donald Trump recently signed a bill that impacts retirement and Social Security. This bill exempts almost 90% of retirees from paying income tax on Social Security. Definitely a saving!

It is important to remember that there is never a perfect time to start saving. In fact, the earlier the better. Even if you are just starting your career, saving a small percentage every month will go a long way in the future. 

As a young investor, it is important to consider equity-indexed life insurance, as it offers protection, potential growth, and life insurance. Aggressive stocks are also a good call, as long as you follow the advice of an advisor.

Keep in mind that it is never too late to start saving. Cut out any unnecessary spending and put that money aside for your retirement. If necessary, part-time work is also a viable option for retirees.