Americans Are Facing a $3.83 Trillion Retirement Shortfall. Here’s What to Do About It – North Platte Telegraph

Posted: October 19, 2020 at 3:53 am


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If you decide that your primary income source during retirement will be none other than Social Security, whose meager raises barely allow seniors to keep up with inflation, then you may be in for a financial shock once you leave the workforce behind. But if you make an effort to save independently and save well, then you'll lower your risk of winding up short.

How much money should you set aside for retirement? A good rule of thumb is to aim to sock away 15% to 20% of your earnings (more if possible) in a 401(k) or IRA. Furthermore, you'll want to invest your savings aggressively for maximum growth, and that means loading up on stocks, especially when you're younger and retirement is a good number of years away.

The amount of savings you're able to amass in time for retirement will depend on how early you start building your nest egg and how well your investments perform. But here's a snapshot of the wealth you might build if you give yourself a 35-year savings window and go heavy on stocks in your portfolio:

Monthly Contribution

Ending Balance After 35 Years atAverage Annual 7% Return

$200

$331,800

$400

$663,500

$600

$995,300

$800

$1.33 million

$1,000

$1.66 million

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Americans Are Facing a $3.83 Trillion Retirement Shortfall. Here's What to Do About It - North Platte Telegraph

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October 19th, 2020 at 3:53 am

Posted in Retirement