How much savings do you need in the USA at every age
According to Bank of America, 16 thousand millenials from 23 to 37 years on average own savings of $ 100 thousand or more.
This is good data, given that by 30 years it is necessary to strive to save your annual salary on savings. The average income for Americans aged 25 to 34 years is $ 40 325, which means that savings of $ 100 thousand are far ahead of the schedule.
How much should you save at a certain age
Although the amount you have is enough depends on many factors, Kimmy Green, an expert on personal finance, knows a simple formula that will help you understand if you have enough savings at a certain age.
In 20 years try to save 25% of your annual salary.
“Just make sure that your living expenses do not exceed 75% of your gross income,” says the expert.
In 30 years, you should have time to set aside the equivalent of your annual salary. If you earn 50 000 dollars a year, try to have savings of 50 000 dollars when you reach 30 years.
In 35 years: two annual salary.
In 40 years: three annual salary.
By 45 years: savings must be consistent with four annual salaries.
In 50 years: 5 annual salaries should be on the account.
In 55 years: 6 annual salaries should be on the account.
In 60 years: the amount of savings should be 7 annual salaries.
In 65 years: savings must match 8 annual salaries.
Green's schedule is similar to the schedule recommended by the pension plan provider. Fidelity Investmentswhich says that the basic rule is to have the equivalent of your salary saved at the age of 30 years, and have savings that correspond to 10 annual salaries if you want to retire in 67 years.
“While it may sound incredible today, if you've been saving this money starting at age 20, it's not as difficult as it sounds,” says Green.
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