“The Money Pouch is a free wealth management app which will help you to organise your personal finances”
1 in 6 millenials have saved absolutely nothing for retirement.
Even amongst older millenials, only 60% have saved over $1,000.
How much should you save for retirement?
You should save around 25% of your annual salary in order to prepare for your retirement.
You will need to have saved $1,000,000 in retirement to give you a $50,000 per year annual salary in retirement. Actually, you will need to save almost triple this amount depending on your age, thanks to inflation eroding the value of what $1,000,000 can buy in the future.
Are You Behind on Saving for Retirement?
Let’s see where you stack up compared to your peers in the guide below…
By age 40: You should have already saved 3 x your annual salary
By age 45: You should have already saved 4 x your annual salary
By age 50: You should have already saved 5 x your annual salary
By age 55: You should have already saved 6 x your annual salary
By age 60: You should have already saved 7 x your annual salary
By age 65: You should have already saved 8 x your annual salary
If you haven’t hit these targets, you need to increase the amount you are saving today.
“People are living much longer, your retirement monies may have to last you up to 40 years and also pay for all your medical bills and old age care in retirement”
What Will Your Retirement Look Like?
Do you want to live a comfortable retirement and be able to afford the small luxuries in life? Many people who didn’t save the right way will struggle in retirement.
Today, about 12.4 percent of the population aged 65 or older in the USA is still in the workforce, up from 3 percent in 2000. I expect this percentage to grow as people live longer and saving becomes more difficult.
The safest way to invest for the long run is to allow a roboadviser to automatically invest your cash among stock and bond ETFs.
Watch this video to discover how to set up an automated stock trading account in only 10 minutes
Then just follow the instructions to set up a new account.
Once you have filled out all your information and uploaded your passport and utility bill documents, your account will need to be checked with compliance.
Usually, your new account can be set up in just a few days if all your documentation is correct.
Start saving earlier in life for an easier retirement. The later you leave it to save, the more money you have to put in every month to achieve the same pension pot in retirement. So, it pays to start saving at a young age.