There’s something magical about reaching the $1M mark for your retirement. Although $1M isn’t quite what it used to be, it will still afford many a very comfortable retirement.
While it sounds like a nice number to reach, how exactly do you get to $1M by age 65?
Assuming your investments average a return of 6% per year and you started saving at age 25, you need to save $6,461 each year (or $538 per month) for 40 years. If you are like most and waited until you were age 35, you would need to save $12,649 each year ($1053/month) to reach $1M within 30 years. However, if you delayed your savings and didn’t start saving until you were age 45, you’d need to save more than twice as much for a 20 year period to reach the magical $1M
In order to reach $1M by the age of 65, you would need to save the following each year assuming you start saving at the age of 25, 35, or 45.
- Start saving at age 25 = $6,461 / year
- Start saving at age 35 = $12,649 / year
- Start saving at age 45 = $27,185 / year
Share your story with others on how you plan to save $1M by age 65.