saving money to retire

How Much Money Should a Person Save for Retirement?

Have you ever wanted to know how much money should a person have saved for retirement? Well, in this article today we’re going to explore this topic.

How Much Money Should a Person Save for Retirement?

Typically in retirement you will most likely need the same amount of money you need to live RIGHT NOW! Unless you are a homeowner and you’re planning to sell your house and relocate to another less expensive area, then the amount of money that you will need to survive in retirement is exactly the same amount that you need right now.

However, most people will receive less money in retirement.  This is what’s scaring those nearing retirement age.  They’re beginning to understand that they won’t have enough coming in.

Here’s What Happen…

In 1978 Congress passed the Revenue Act of 1978 it included a section in it called 401(k) which allowed employees to not be taxed on deferred compensation.  A benefits specialist by the name of Ted Benna came up with this idea.  His company was one of the first to incorporate 401k’s.

By the 1980’s this was all the rage and companies were more than happy to ditch their pensions plans in favor of the employee managed retirement plan.  It was supposed to give employees more control of their financial future. Brokerage houses loved it because it became another way to collect fees.

But the 401(k) has never allowed individuals to save the same amount or anything close to the amount that they earned in a year.  Which is rightly so because people have to live.  The assumption was that the individual would play the market and grow their own funds.  But we all know that tends to work out, which is upside down.  Especially if you don’t know what you’re doing.

So Back to the Question…

How much money should a person save for retirement?  You have to consider how much money you plan to earn in retirement from social security and pensions.  How much you will have to pay in taxes should also be factored into this.  Individuals should try to save close to $1 million for retirement just to be safe.  While some people may believe that this is impossible.  It is in fact very much possible if you get a side hustle going on and grow your side hustle business to over $50,000 a year after expenses.

One of the best side hustle businesses for people close to retirement is Youngevity.  Youngevity has been around since 1977 and was founded on solid principles.  If you’re getting older and you find yourself concerned about your health and your wealth, then consider becoming a rep with Youngevity and see how it can change your life.  Click here to learn how to become a member today.

Leave a Reply

Your email address will not be published. Required fields are marked *