10% of retirees have $1M+ in savings
finance.yahoo.com
10% of retirees have $1M+ in savings
1–10 of 55 posts
Re: 10% of retirees have $1M+ in savings
#2With todays prices it won't last long.
Re: 10% of retirees have $1M+ in savings
#3For 95% of people that is an incredible amount of money
Re: 10% of retirees have $1M+ in savings
#4$1M in investments, drawing down at a moderate rate of 4% per year, gives you $40k/year income. Not poverty level in the USA (unless you’re in a high COL city), but not fabulously comfortable either. And only 10% of retirees have even that? Ouch.
Back in the ‘80s, “retiring a millionaire” was awesome: you won. Not so much, today. People are living longer now, too. $1M is not going to stretch as far as many would believe. I’m planning to significantly dial down my lifestyle when I retire—most of us will have to.
Re: 10% of retirees have $1M+ in savings
#5[deleted]
Re: 10% of retirees have $1M+ in savings
#6$1M in investments, drawing down at a moderate rate of 4% per year, gives you $40k/year income. Not poverty level in the USA (unless you’re in a high COL city), but not fabulously comfortable either. And only 10% of retirees have even that? Ouch. Back in the ‘80s, “retiring a millionaire” was awesome: you won. Not so much, today. People are living longer now, too. $1M is not going to stretch as far as many would beli…
4% is the rule of thumb for indefinite withdrawal including correcting for inflation right? That's not necessary for a pensioner
Re: 10% of retirees have $1M+ in savings
#7$1M in investments, drawing down at a moderate rate of 4% per year, gives you $40k/year income. Not poverty level in the USA (unless you’re in a high COL city), but not fabulously comfortable either. And only 10% of retirees have even that? Ouch. Back in the ‘80s, “retiring a millionaire” was awesome: you won. Not so much, today. People are living longer now, too. $1M is not going to stretch as far as many would beli…
Money markets and CDs are paying ~5% so that would only be if you want to not draw down.
Re: 10% of retirees have $1M+ in savings
#8One, in the article many more retirees have net worth > $1 million. Not sure which is the more relevant number.
Two, this likely means most people will rely on Social Security to fund their retirement.
Re: 10% of retirees have $1M+ in savings
#9Finance news is for rich people and this article proves it, talking like it's a choice whether you retire with $1 million or not. If you're thinking you're not rich but still interested in finance, then you're probably rich! ;)
The article breezes past that the median retirement saving is actually $164,000, which makes sense as the median salary is ~$60,000.
Re: 10% of retirees have $1M+ in savings
#10The title is misleading, they are referring to "Retirement Savings" just counting 401k and IRA dollars only. Personally my "retirement savings" are over 60% in non-IRA or 401k dollars, and I'm retired.
Later in the article they begin to talk about overall net worth including regular savings and investments and the numbers are better but could still be problematic:
>> In terms of the average retiree’s net worth, the Federal Reserve data puts it at approximately $1.2 million for those aged 65 to 74. The average net worth drops to $958,000 for those aged 75 and older.