New study shows most people aren’t saving enough for retirement
Financial experts believe the magic number people should now save is $2 million
TWIN FALLS, Idaho (KMVT/KSVT) — It’s a question many people ask themselves, ‘How much money do I need to retire comfortably?’
In recent study by Finder, participants believe they will need just under $600,000 dollars to feel comfortable in retirement. However, Finder’s investments publisher spoke with KMVT and explained how and when people should start their retirement plans.
He says, many financial experts believe the magic number people should look to get out of a 401K is now actually about $2 million dollars.
Now, that may sound like a huge number and scares many people from working on their retirement savings early on. However, he says if you’re starting early it’s not that hard to get there. That’s if you can start putting away 10% of your earnings.
“If you started at 20, let’s say for easy numbers and you made $50,000 a year and you’re retiring at 65 -- 10 % will end up at more than $2 million bucks,” said Ron Prichard, Finder’s Investments Publisher. “Assuming just the average market return.”
He adds, $2 million dollars is what you need to end up with through a 401K, and that is gained as the stock market earns money. It’s not how much you need to put down from your own pocket.
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