Here's how much the average American 60-year-old holds in retirement savings — how does your nest egg compare?
Even Americans with only modest retirement funds may be shocked to learn how many people are in desperate straits: as in, they have no nest egg at all.
New research by the Federal Reserve shows that an astounding one in four Americans (including the 27% who consider themselves retired) have absolutely nothing saved.
And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
A Vanguard study found those between 55 and 64 held an average of roughly $256,000. But this includes high income earners; breaking the figures down, it shrinks to a median of about $90,000.
So how much should you have by the time you’re 60? Broadly speaking, Americans should aim for the equivalent of their salary by age 30, three times by 40, six times by 50, and eight times by 60.
If you’re 60, American and make $50,000 per year, that means you should have $400,000 saved in your retirement account. As you can see, neither the average nor the median retirement amount comes even close.
That said, the “should” amount doesn’t account for a host of variables. Consider for example how much you’ll be able to cut expenses in retirement, the money you may take in through Social Security, assets you can unload or the sale of a home.
Luckily, it’s never too late to start putting cash aside — here are two tips to get you started.
Talk to a professional about your financial situation
If thinking about your finances feels like too much, it might be time to talk to a professional.
You don’t have to navigate your retirement savings alone, and you definitely don’t have to do it without a vetted financial advisor at your side.
Regardless of what stage of retirement saving you’re in, WiserAdvisor will link you up with a pro to help you start putting cash aside — and maximizing it.
Just answer a few questions and within minutes WiserAdvisor will pair you with a list of financial advisors to choose from.
Explore better insurance rates
It’s not uncommon for people to take what they’re given when it comes to insurance rates. But the truth is, you could be wasting away a solid nest egg by overpaying for your coverage.
All you need to do is answer some quick questions about yourself and they’ll instantly sort through over 200 insurers to find you the best rates available and any discounts.
SmartFinancial's comparison tool streamlines shopping around for better insurance rates. They do all the work for you so you can shave your monthly insurance bill and put that extra cash into your future.
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