So what is the age you would like to retire and walk away from it all 55, 65, 70, 75? When it comes to retirement hopefully you have been saving some cash because this number will shock you and many Americans miss the mark and won’t be able to hit this.
On average, Americans believe they need $1.7 million to retire, according to a recent survey from Charles Schwab, which looked at 1,000 401(k) plan participants nationwide.
In fact, “that’s a pretty good number if you average out, age and median salary across the U.S.,” said Nathan Voris, a managing director at Schwab Retirement Plan Services.
However, “the bulk of folks do not get there,” he said. More than half of those polled are contributing 10% or less of their salary to their 401(k) – their largest source of retirement savings – with an average annual contribution of $8,788, Schwab found.
That’s is a good start, but may not suffice for most savers, Voris said, especially if you start saving for retirement later in life.
So if you have kids like I do it’s important to pass along the message to SAVE MONEY. For example, if you start in your 20s, stashing 10% to 15% of your salary each year could be enough to retire comfortably, according to Schwab. But if you don’t start until age 45 or older, you would need to set aside as much as 35% of your salary annually – a goal few workers achieve.