Do you expect to retire and live a safe life? But if you want to successfully accomplish this goal, do you have enough funds now? If not, how much money do you need to prepare next? Retirement preparation and planning always involve a wide range of aspects, depending on how much you expect to spend each year after retirement? How long do you want to live like this? Although there will always be unpredictable factors about the future life, but despite this, if you can grasp a few points, you can still plan your future retirement blueprint for yourself, and you can further know whether the current preparation is appropriate. Financial freedom is not out of reach. The author also put forward two key retirement factors before , which can be used to calculate the required retirement schedule.
The content I want to share with you this time is from Fidelity (Fidelity) Let us understand together, if we want to retire at the legal age, how much we should save (invest) in each age group in order to retire smoothly. How much should the pension be prepared for? retirement life expectations From Fidelity's simulation setting for pensions, he assumes that a reader starts working at the age of 25, increases his salary by 1.5% every year, and continues to the legal number list retirement age (the original setting is 67 years old). Save and invest 15% of your income, use an income replacement rate of 45% of your annual income in retirement, and expect to maintain this retirement until age 93. 15% savings rate 45% Earned Replacement Rate Retirement for at least 26 years The meaning of the income replacement rate is that if the annual income obtained from work before retirement is 1 million, the annual pension that can be used after retirement is 450,000.
However, the reason why the income replacement rate is set this way is based on the US Bureau of Labor Statistics Consumer spending The average income replacement rate of 45% was based on the most similar life goals before retirement. In addition, if the replacement rate exceeds 55%, it is significantly higher than the average level, and if it is less than 35%, it is behind the average level. How much assets do you need to have at each age? At present, we know that the goal of retirement life is mainly set in the lifestyle that meets the income replacement rate of 45%, so the next question will be, in order to achieve this goal, do I have enough retirement assets at my current age? Or in other words, how much should I have in retirement assets now to do it successfully? Based on the previous assumptions, here are the retirement assets that need to be prepared for each age group. 30 years old: double annual income 40 years old: triple annual income Age 50: Six times your annual income 67 years old.