How Retirement Has Changed Over the Years
October 19, 2016
As we all know, there is no set amount of money that you need saved to retire – it depends on a number of factors such as lifestyle, cost of living, medical expenses, time horizon etc. A recent study by Fidelity suggests that to retire at 67, you need to have saved 10 times your annual salary if you want to live an “average” lifestyle. This lifestyle is defined as one similar to how you have lived during your working years.
GOBankingRates.com took the amount of the average annual wage in the past per year, based on data provided by the U.S. Social Security Administration and multiplied it by the Fidelity factor of 10 to come up with the average total cost to retire per year and maintain that “average” lifestyle.
Remember, the annual wage index is just that, an average. Many workers will make more or less than the averages stated. So, if you make more, you will need to save more money to retire, if you make less, you will need to save less.
Use the information below to help you figure out how much you will need to retire based on the inflation from year to year. Remember, if you plan to retire in 20 years, the amount you make will be different than the amount you are currently making.
National Average Wage Index: $3,532.36
Cost to Retire: $35,323.60
National Average Wage Index: $4,938.36
Cost to Retire: $49,383.60
National Average Wage Index: $9,226.48
Cost to Retire: $92,264.80
National Average Wage Index: $17,321.82
Cost to Retire: $173,218.20
National Average Wage Index: $25,913.90
Cost to Retire: $259,139
National Average Wage Index: $38,651.41
Cost to Retire: $386,514.10
National Average Wage Index: $49,503.89
Cost to Retire: $495,038.90
If you need help setting up a plan or checking to see if you are on track, please contact our office to meet with one of our Wealth Advisors. We would love to help you achieve your retirement dreams.