What's a Realistic Retirement Budget? I'm 55 With $620k Saved and $68k Income
View original at finance.yahoo.comWhat's a Realistic Retirement Budget? I'm 55 With $620k Saved and $68k Income There are two common ways to think about a retirement budget: you can start with the lifestyle you want or the assets you have…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Social Security defines full retirement age as 67, when most people can first claim unreduced benefits
80% confidenceClaiming Social Security at 62 can lower payments to roughly 70% of the full amount
80% confidenceDelaying Social Security benefits to age 70 can reach about 124% of the full retirement age amount
80% confidenceA 55-year-old with $620,000 in a 401(k) earning $68,000 per year and contributing 10% annually could reach about $1.69 million by age 67
80% confidenceUsing the 4% rule, if your goal is to withdraw $100,000 annually in retirement income your savings target would be roughly $2.5 million
80% confidenceEarlier retirement generally increases exposure to inflation and longevity risk
80% confidenceSome analysts note that current bond yields and market conditions may support different withdrawal assumptions than the 4% rule
80% confidenceSavings held in a Roth account generally allow qualified withdrawals to be tax-free
80% confidence