How much money
will you need in retirement?
According to current life expectancy figures, you could live
20 to 30 years after you retire at age 65. (Please refer to
the Normal Retirement Age chart shown below.) To make sure your
savings last as long as you do, experts say, you can't afford
to withdraw more than 4% to 5% from your nest egg each year,
adjusted annually for inflation. Here's how big a nest egg
you'll need at retirement, depending on the annual withdrawals
you plan to take.
to withdraw
4% to 5%
|
you need to have saved at least |
| $16,000 to $20,000 |
$400,000 |
| $20,000 to $25,000 |
$500,000 |
| $24,000 to $30,000 |
$600,000 |
| $28,000 to $35,000 |
$700,000 |
| $32,000 to $40,000 |
$800,000 |
| $36,000 to $45,000 |
$900,000 |
| $40,000
to $50,000 |
$1 million |
| $50,000 to $62,500 |
$1.25 million |
|
What is your normal retirement age?
The
normal retirement age (NRA) is the age at which retirement
benefits are equal to the primary insurance amount. The primary
insurance amount (PIA) is the benefit a person would receive
if he/she elects to begin receiving Social Security benefits
at his/her normal retirement age. At this age the benefit is
neither reduced for early retirement nor increased for delayed
retirement. The
table below shows how NRA varies by year of birth for retirees.
| year of birth |
age |
| 1937 and prior |
65 |
| 1938 |
65 and 2 months |
| 1939 |
65 and 4 months |
| 1940 |
65 and 6 months |
| 1941 |
65 and 8 months |
| 1942 |
65 and 10 months |
| 1943 - 1954 |
66 |
| 1955 |
66 and 2 months |
| 1956 |
66 and 4 months |
| 1957 |
66 and 6 months |
| 1958 |
66 and 8 months |
| 1959 |
66 and 10 months |
| 1960 and later |
67 |
|
Note: Persons born on January
1st of any year should refer to the normal retirement age
for the previous year. |
