If you’re 30 and you haven’t saved any for retirement, you might think you’re doomed.
The reality is much different.
If you’re age 35 or younger, your peers have around $12,000 saved for retirement, on average. If you have more than $12,000 saved, you’re already ahead. That’s good news.
If you’re age 30, you have between 30 to 35 years of saving and investing, unless you want to retire earlier. For most 30 year olds, December 1, 2051 is a key date 35 years from now.
Furthermore, if you have $12,000 saved today and saved $0 for 35 years, your money could be worth $700,000 or more depending on how you have it invested. If you know the Rule of 72, you know your money can double every 6 years with 12% returns.
If you save $348 per month for 35 years, you could be worth $1 million.
Remember this number: $348. If you have the capability of saving $348 every month for 35 years, you could be worth $1 million by age 65. That’s only $4,176 per year. That’s less than the maximum contribution to your IRA.Saving $348 per month can turn you into a millionaire. Click To Tweet
If you save much more than $348 per month, you’re well on your way to a net worth greater than $1 million.
Has this infographic changed the way you think about retirement savings? Let us know in the comments below.