What Will Your Retirement Years Look Like?
Whether or not you need or want to work later in life, those “golden years” will be a lot shinier if you start thinking about them now. From traveling to spoiling the grandkids, from enjoying hobbies to taking college courses, from starting a fun part-time second career to leaving a legacy, the good life awaits those who think and plan ahead. What will your retirement look like?
It’s Never Too Early or Too Late to Save for Retirement
Only one in three Americans have some retirement savings. This means many will need to continue to work instead of retiring to supplement the $13,000 average annual social security income. For many Iowans, meeting the financial demands of today means delaying saving for tomorrow, but saving just a little money now can be a huge help for later.
It’s important to put away some amount of money — preferably in a retirement savings vehicle offering a higher interest rate, such as a 401(k) or an IRA, versus a lower interest savings account. If you start saving today, your money can go to work for you by compounding interest to build you an emergency fund or a sizeable nest egg to retire.
How much do you need to invest each month to reach your retirement goal? Are you on track to hit your retirement year target? Use this calculator to configure how much money you will have by your target date by inputting how much you have already saved in a retirement plan and your current monthly investment in that plan. If it’s possible to save a little more each month, you may retire a little early or have a higher annual income during retirement.
Even if you are 50 years old and have not saved a dime for retirement, you can accumulate more than $100,000* by age 67, when you can take the maximum monthly payout from Social Security. All you need to do is invest $300 per month in your employer’s 401(k) – if your employer matches your contribution, you’ll have even more money at retirement or can contribute less monthly.
*Based on saving $300 per month for 17 years with a 5% annual rate ROI.