According to a recent article in Forbes, The National Institute on Retirement Security asked Americans how much retirement income they believed they could get from $100,000 of savings at retirement. The responses were alarming.
If one applies the four percent rule, a $100,000 nest egg would produce about $4,000 of income in the first year of retirement, which would be increased by inflation each subsequent year. However, the research finds that only eight percent of respondents correctly indicated that $100,000 in savings would generate $3,000 to $4,999 annually in income throughout their retirement, starting at age 67.
Most respondents wildly overestimated the income that could be produced from that $100,000 nest egg. Nineteen percent indicated that the sum would make $25,000 or more, while 21 percent thought it would generate $10,000 - $14,999 in annual income through retirement. This data suggests that Americans must be aware of how much they need to save to produce a desired retirement income.
We invite you to use our retirement calculator to determine how much you need to save to fund your retirement. Just click the link below:
https://www.dwassetmgmt.com/calculators?CALCULATORID=RC09&TEMPLATE_ID=WWW.DWASSETMGMT.COM_1
Source: https://www.nirsonline.org/reports/retirementinsecurity2024/
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