Want $50000 in Retirement Income? Here’s How to Get It. – dbrnews.com

Posted: November 3, 2020 at 4:54 pm

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(Christy Bieber)

Having enough money in retirement is essential to enjoy your later years. To make sure you're financially comfortable, it helps to estimate how much income you'll need your retirement savings to produce. For example, say you're hoping to have $50,000 in annual retirement income. Here's the amount you'd need to save to meet that milestone.

If you're like most retirees, chances are you'll get your income from two sources: your Social Security benefits and your investments. If you receive a Social Security benefit of $1,514 per month (the average as of June 2020), that would mean you'd need your investment accounts to produce $31,832 in income in order to have $50,000 as a retiree.

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You'll want to make sure taking this much out of your retirement accounts won't drain your nest egg too quickly. That means adopting a safe withdrawal rate. If you follow the 4% rule, which allows you to withdraw 4% of your investment account balance the first year you retire and adjust withdrawals up by inflation annually, you'd need $795,800 saved by the time of your retirement in order for your investment balance to produce the $31,832 that combines with your Social Security to give you $50,000.

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Want $50000 in Retirement Income? Here's How to Get It. - dbrnews.com

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November 3rd, 2020 at 4:54 pm

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