Many of us dream of the day we can finally retire, relax, and spend the money we have saved to travel or live comfortably.
However, many factors in today's economy can affect one's retirement savings, meaning that what you save now may not be enough when you finally retire.
What Do the Savings Look Like Right Now?
According to 2022 data from the Federal Reserve, people under 35 have an average of $49,130 saved for retirement. Meanwhile, those between 55 and 65 have $537,560.
Now, we must acknowledge that living is expensive, and prices keep increasing. So, these savings might seem like a lot, but the question is, will it make you "rich" when you need to pay for your life during retirement?
Well, it might surprise you that many young adults and those nearing retirement have similar thoughts on what being "rich" means.
How Much to Retire "Rich"? According to Gen Z and Boomers
A survey by GOBankingRates asked nearly a thousand Americans how much they think couples need to retire "rich," and it reveals that both young adults (18 to 24 years old) and older folks (55 to 64 years old) think it's quite a bit.
Over 24% of Gen Z and 27% of younger baby boomers believe you need more than $5 million to retire with wealth.
Despite being from different times, young adults just starting and those close to retiring agree on what it takes to live a high life in retirement.
Regardless of your age group, you must include retirement planning in your books. Sure, it may be overwhelming to think about the future and whether or not you're saving enough.
However, many experts emphasize good financial planning, consistent efforts, and hard work can help individuals save up to millions for retirement.
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Tips to Build Wealth for Retirement
If you want a "rich" retirement, here are some tips from financial experts at Fidelity Investments and Charles Schwab, and if you're saving as a couple, then you might even have enough to fulfill that retirement dream:
1. Start saving early and regularly
2. Invest wisely in diverse options
3. Make a financial plan and follow it
4. Don't touch your retirement money early
5. Consider working with a financial advisor
It's very much possible to retire with a healthy and wealthy bank account if you make smart financial decisions.
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