You could end up working for 30, 40 or even 50 years of your life. At the end of this period, you hope to have a comfortable and enjoyable retirement. But not everyone intends to meet that goal adequately – a 2020 survey by MoneyRates showed that 62% of people who responded have no idea if they are going to run out of money.
If you fall into this category, the first thing to do is find out if you are saving enough. If not, you can give your retirement planning a boost by doing these four things.
1. Set a retirement date
If you’ve started saving and investing late, you can get started by setting a retirement date. You don’t need to know the exact day, but you do need to know things like the year or approximate age you will be.
Once you’ve done that, you can do some planning ahead. For example, if you know you have 25 years left before you retire with the plan to save $ 500,000, you will need to set aside $ 20,000 each year. But if that level of annual savings seems unattainable, this is where investing can help you reach your goals with much less. The table below shows approximately how much you would need to save each year if your money was invested at different rates of return.