Here’s how you can save $1 million for retirement on an annual salary of $70,000

Wealth

Consistently saving a small percentage of your salary is a simple way to ensure you’re prepared for retirement.

As a rule of thumb, most financial advisors suggest you save 10% to 15% of your earnings.

Here’s a case study assuming you start with no savings, plan to retire at 65 and have investments that earn 6% annually.

If you want to retire with $1 million, you’ll need to invest about 9% of a salary of $70,000 starting in your 20s. Waiting until you’re older will require a larger portion of your pay. If you wait until your 40s, then that number jumps to 25% of your salary. This does not account for variables such as a possible pay increase or decrease, employer match, inflation or any other of life’s curveballs.

Watch this video to find out how much money you will need to invest to save $1 million for retirement, broken down by age.

Articles You May Like

Lauren Taylor Wolfe says it’s just too risky for investors to ignore ESG amid recent pushback
Why Low Volatility ETFs are Beating the Market
Bed Bath & Beyond’s merchandise problems will make it hard to pull off a turnaround this holiday season
Amphibious houses and floating cities could protect coastal communities from sea-level rise
Stock market losses wipe out $9 trillion from Americans’ wealth