The answer is subjective and depends on factors like geographical location, lifestyle, retirement plans, and more. For example, a survey by GOBankingRates suggests that if you live in Mississippi, you may need approximately $505,000 for retirement. Conversely, you might require over $1.2 million to retire in New York state.
Vanguard, for instance, advises retirees to have between 75% and 85% of their regular annual income saved for each year of retirement. To achieve this target, they recommend setting aside 12% to 15% of your annual income. If you earn $70,000 annually, saving 15% of your income for five years would only cover one year of your reduced retirement salary.
Maximum Money for Retirement in 2023
Feeling like you’re lagging? Here are some strategies to accelerate your savings and enhance your retirement fund, regardless of whether you’ve already retired or are about to: That’s a significant challenge, as working for 50 years would yield savings for just 10 years of retirement. The emphasis here is on “easy”! As you’re retiring from a demanding job, don’t take on another stressful job, even if it’s part-time.
Aim for something profitable that also fits within your retirement lifestyle without giving you the sense of full-time work. After all, it’s called retirement for a reason!
One excellent strategy is to monetize a hobby, passion, or even your professional expertise. For instance, you could turn a woodworking hobby into an online business, sell travel photos to websites like Alamy and Shutterstock, or even freelance as a consultant using your healthcare experience.
Invest in the Stock Market
You’ve probably already invested in the stock market if you’re planning to retire. While starting investments at 30 years allows for decades of growth and earnings, the scenario is quite different at 70.
Avoid risking your retirement savings by investing in risky ventures or so-called “next big things.” Instead, consider safer options like individual dividend stocks, index funds, and exchange-traded funds (ETFs). Consult with your financial adviser to understand the level of risk you can comfortably assume and make informed investment decisions to reach your retirement goal.
Earn Rental Income
Consider earning rental income. The simplest way is to rent out a room or your home through a platform like Vrbo while you’re traveling during retirement. This can offer a steady income source, especially if you manage to secure long-term or regular rentals.
Keep in mind that renting a property involves property and rental management, so you might need to handle these duties or hire someone else to do it. If this seems too demanding, consider renting out a storage space, parking spot, or even tools. These methods can generate a diversified, stable income to boost your retirement savings quickly.
Some investment platforms even allow you to rent to large brands like CVS, Kroger, and Walmart, providing consistent income each quarter. Whatever route you choose, always consult your financial adviser. Their guidance can be invaluable as you work towards fulfilling your retirement dreams.