How much money must be saved annually to become a millionaire in the United States

13% of Americans surveyed have saved themselves more than $ 300 thousands after a retirement pension. Photo: depositphotos

The sooner you start saving, the better. Most Americans prefer to retire when they decide to do it themselves in order to feel comfortable from a material point of view. Unfortunately, not everyone can achieve this.

Numerous studies show that Americans either set aside insufficient funds or incorrectly invest the money they earn. About 56% of Americans, surveyed in March, the GOBankingRates portal had no more than 10 thousand dollars in their account at the time of retirement. At the same time, every third had no savings at all.

On the other hand, 13% of respondents saved themselves more than $ 300 thousands for a comfortable existence. The level of personal savings, on average, in the United States in May 2016, as reported by the Federal Reserve Bank of St. Louis, amounted to 5,3%, which is significantly lower than in most developed countries of the world.

In addition, a Bankrate Money Pulse survey showed that 52% of Americans do not invest in stocks in stock markets, although annual savings have historically been about 7%. Many simply do not believe in the stock market after falling more than 50% during the last global economic crisis.

However, the stock market continues to be one of the most reliable ways to save. You should save regularly to reach the maximum by age 65, the traditional retirement age for US citizens.

With online calculator investments on the Bankrate website, a savings scheme has been developed by age - from 20 to 60 years (starting capital - $0, income rate - 7%, excluding taxes), which will allow you to accumulate a million dollars by the age of 65:

• 20 years: $3,500
• 25 years: $5,010
• 30 years: $7,234
• 35 years: $10,587
• 40 years: $15,811
• 45 years: $24,394
• 50 years: $39,795
• 55 years: $72,378
• 60 years: $173,891

Judging by the graph, leverage is rapidly disappearing as one saves and invests for life after retirement. However, unfortunately, in the United States, the “I’ll start saving later” approach is more common.

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