Unless you plan on working until death, as 40 percent of baby boomers say they do, retirement planning is absolutely essential. According to data gathered by Money News, 87 percent of adults say they are not confident they have enough money for retirement. This leaves the remaining 13 percent, who feel completely confident about their retirement savings.
How much is enough to feel confident? Is $1 million enough? According to a recent report by USA Today, it may very well not be. Here’s why.
Average retirement age
In the U.S., the average age at which a worker retires is 61 years, according to a CNBC publication. Assuming a life expectancy of 81 years, this means you have 20 years of expenses to cover with your retirement income. Joe Heider, regional managing principal for Rehmann Financial Group in Westlake, Ohio, said to USA Today, “It translates into $40,000 to $50,000 (annually) in sustainable revenue.”