In Your 20s? Save This Much Money Each Month to Retire With $2 Million
Just the thought of having $2 million to your name is enough to make you want to save. And as Robert Powell reports for USA Today, hitting seven figures upon retirement is entirely possible with the right savings plan. "Older millennials—those born in the early 1980s—will need about $1.8 million salted away to maintain their standard of living in retirement," he explains. "Younger millennials—those born in the late 1990s—will need upwards of $2.5 million."
To get to that point, the oldest millennials, "assuming they have no money set aside today and that they earn 5% on their investments, will need to sock away $2000 a month for 32 years to accumulate a $1.8 million nest egg," he writes. "The youngest millennials would need to save $1000 a month for 48 years to accumulate $2.4 million."
If you'd like a more personalised approach, Business Insider's John Rampton recommends a four-step approach: Estimate your future spending, use a retirement calculator (like this one from NerdWallet), write down your retirement plan now, and revisit it every few years or so. "Using those steps can give you a ballpark figure on what you need to enjoy your golden years," concludes Rampton. "Once you know how much money you need to save each month, and you're able to handle that financially, you can start setting more money aside into your retirement savings to help you reach your $5 million goal."
Head over to Business Insider Australia for more insight, and share your own retirement savings plan below!