All of us will soon grow old and will eventually need to retire from our jobs. Of course, you won’t be able to financially support yourself without a job, so you need a retirement fund to keep you clothed and alive on this part of your life.
It is the best practice for people to save as much money as they could on their younger days. Although there are provided retirement funds being saved automatically on job payrolls, it is still highly recommended for workers to save money for their retirement for as young as 20.
Surely, when you reach 50 or 60, it will all matter. If you have enough savings and your full retirement fund, you will be good to go even without the help from your family members or even from the government. You can also enjoy life better since you have enough funds to go to places and explore.
The big question is, how much should your bank account have for you to finally say, “It’s time for me to retire”?
It all depends on how early or how late you would like to quit the job and hit the farmland. The usual age for retirement is around 60 and onwards. So from this time, expect that you will still be living at least 20 more years.
You need funds for those two more decades. It is recommended that an average retiring person should have at least $12 to spend for each day. Multiply that to the 7300 days within the 20 more years of expected life span and that would be about $87,600. You can live averagely for 20 more years with that money.
When you add funds for emergencies, recreation, medicine, and other miscellaneous stuff, you would need a little more $30,000. Add that to the previous amount, and we would have $117,600. We could just round this off to a clean and safe $120,000.
So there you go. For you to retire happily and financially stable, you would need to save $120,000, aside from the retirement fund you have. This will surely keep your cold nights warm and your warm nights cozy.