Here’s How Long $920,400 May Last You in Retirement
If your living expenses aren’t as high, obviously you can make that money last longer.
To help forecast how much money you'll have in retirement, Schwab has a nifty Retirement Savings Calculator that shows you whether you're saving enough. You'll have to enter such information as:
- The age you plan on retiring
- How much money you plan to spend annually in retirement
- How much you've saved so far for retirement
- How much you expect to get from Social Security
At Clark.com, we want you to take active steps now to save money for the future.
3 Financial Strategies to Fund Your Retirement Now
1. Enroll in Your Employer’s Retirement Account
Money expert Clark Howard says one of the best ways to save for the future is to enroll in your employer's retirement plan.
When it comes to saving, he says, "Most of us just aren't going to get around to it with the best of intentions, but if you set up with your employer's 401(K) or equivalent plan to put money in every pay period, it happens on automatic pilot!"
2. Make Catch-Up Contributions
If you're age 50 or over, the IRS lets you play catch up by making extra contributions to your retirement accounts. How much extra you can save here each year depends on what kind of account it is, but here are the accounts that are eligible.
- 401(k) (other than a SIMPLE 401(k))
- SARSEP (a type of simplified employee pension)
- Governmental 457(b)
- Standard and Roth IRAs
If you think it's too late to save enough for retirement because you're already in your 50s, check out these strategies that could help improve your savings strategy.
3. Start a Side Hustle
Want to bring in some extra money every month? See if any of these side hustles work for you.
"The reality is over a working lifetime if you start in your 20s, in order to have comfort in retirement, you need to put a dime of every dollar you make into a retirement account," Clark says. "If you're not putting that dime in, you're not going to have saved enough money."
That age/savings equation only increases the later you start, according to Clark. "If you start in your 30s, you're going to have to put in more than a dime. If you start in your 40s, you'll have to put in more than that and so on."
More Retirement Resources From Clark.com:
- How to Start Investing and Saving for Retirement
- 11 Ways to Save Money in Retirement
- 6 Best Ways to Save for Retirement in Your 30s