Skip to main contentSkip to main content
You have permission to edit this article.
Edit
40% of Investors Say It Will Take a Miracle for Them to Retire. Are They Right?
AP

40% of Investors Say It Will Take a Miracle for Them to Retire. Are They Right?

Investors with quite a bit of money saved are still not feeling very confident about their retirement prospects.

That's according to a recent study conducted by Natixis Investment Managers, which showed that 40% of respondents indicated it would take a miracle in order for them to retire. And this was a survey of people who have at least $100,000 in investable assets, which is more than many of their peers have.

Are these worried workers right? Will typical retirees need a miracle to be able to leave the workforce with a nest egg that can support them during their later years?

Image source: Getty Images.

Retiring with financial security is possible -- no miracles required

Many of the investors responding to the survey were being overly pessimistic about their retirement prospects. Still, many people are worried about being able to make ends meet once their paychecks stop coming in.

The reality is, saving a retirement nest egg that offers plenty of financial security is within reach of just about everyone, especially if they start early enough -- or are willing to make the sacrifices needed to build up their account balances if they get a late start with investing.

What's needed isn't a miracle. Instead, it takes the following:

  • A detailed estimate of how much you need to save for retirement: There are a few ways to set investment goals, but one of the easiest is to assume you'll need 10 times your final annual salary.
  • A breakdown of your big goal into smaller monthly goals: Breaking down a big goal into monthly or even weekly amounts lets you know how much to invest each month and helps you make sure you're on track. Investor.gov's calculators make determining your monthly savings target easy if you know what size nest egg you'll ultimately need.
  • A budget that prioritizes saving: Once you have that monthly savings amount, treat it like your rent or mortgage and other bills, making it a top priority in your budget. Build other spending around that goal, rather than treating saving as an afterthought.
  • Automatic transfers into your retirement account: Have that monthly sum automatically invested in your 401(k) or other tax-advantaged retirement plan. This makes saving effortless.
  • A solid investment strategy: Finally, build a diversified portfolio with a good mix of assets appropriate to your age. You can invest in ETFs if you are confused about how to pick individual stocks or don't want to spend a lot of time researching different assets to buy.

Whether you're a high earner with a lot of money saved already or are just getting started investing, if you take all these steps, you should be able to retire at a reasonable age with a generous nest egg -- even if no miracles occur.

The $16,728 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

The Motley Fool has a disclosure policy.


Subscribe to stay connected to Tucson. A subscription helps you access more of the local stories that keep you connected to the community.

The business news you need

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

The state of North Carolina requires you to pay taxes if you are a resident or nonresident that receives income from a California source. The state income tax rate is 5.25%, and the sales tax rate is 4.75%. North Carolina offers tax deductions and credits to reduce your tax liability, including a standard deduction or […]

Get up-to-the-minute news sent straight to your device.

Topics

News Alerts

Breaking News