Saving a Buck for retirement can seem overwhelming if you don’t have a set plan or number you are trying to reach.
Financial experts said it doesn’t have to be so stressful.
Don Oliver, owner of DO Fitness, admits planning for retirement is not something he’s ever spent much time on, especially since he plans to work well past his sixties.
He said, “It’s hard to retire at 65 these days.”
Though financial experts said, with the right planning, it doesn’t have to be hard.
So, what’s the “magic number?” Just how much do we need?
Robin Byford, with Stillwater National Bank Wealth Management, said, “That’s different for everyone, everyone’s lifestyle is different.”
Fidelity Investments recently released a recommendation showing the retirement goal to be eight times your yearly salary.
To get there they break it down by age.
- Fidelity recommends that by age 35 have one times your annual salary saved.
- By 45, that jumps to three times your salary.
- At 55, you should be up to at least five times your salary.
- Hitting the goal, eight times your salary by age 67.
Byford said, “You probably need some help getting there.”
Byford said while it’s a good goal, there are a few things to consider.
She said, “If it’s someone that’s going to retire with a full pension benefit, you probably don’t need that much.”
You should also consider your health and whether you might need long-term care, as well.
While Don is still working to get his retirement savings in shape, physically he’ll be ready for his golden years.
He said, “I plan to be one of the most physically fit people in the retirement home.”
Byford said you should also consider inflation, it’s inevitable.