Can you guess what percentage of people have $500,000 saved for retirement? Surprisingly, it’s probably less than you think

Most Americans dream of a comfortable retirement. But how much money do you need to make those golden years truly golden? According to a recent study by Northwestern Mutual, the average person thinks they will need $1.46 million. That’s a pretty lofty goal! While $1 million has long been a retirement savings goal, the truth is that many people start from scratch. But what about those who have saved a substantial amount? Let’s talk about the $500,000 club.

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Believe it or not, according to the 2022 Survey of Consumer Finances, only 9% of American households have saved half a million dollars or more for retirement. In fact, fewer than one in ten families have reached that milestone. It’s an impressive feat, but it also highlights the challenges many people face.

• According to the survey results, 46% of households have some form of retirement savings.

• 26% reported having $100,000 or more in their nest egg.

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Saving $500,000 may seem like a lot of money, but will it fund a comfortable retirement? The popular 4% rule suggests that you can withdraw 4% of your savings each year without depleting your nest egg. For a $500,000 nest egg, that’s $20,000 per year. Sure, it can cover some expenses, but it’s unlikely to sustain a pre-retirement lifestyle for many people.

Fortunately, retirement income isn’t just about savings. Social security benefits Income from an employer can be steady, and part-time work or renting out real estate can supplement your retirement funds. The average Social Security benefit is about $1,827 per month, up to about $22,000 per year. Add in your $20,000 in savings, and you get about $42,000 per year. That can help cover basic expenses, but it can still be tight for some.

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Interestingly, according to a survey by Go Banking Rates, nearly 40% of Americans believe they can retire comfortably on $500,000 or less. While this is possible for some, it’s important to have a realistic retirement plan. If you’re aiming for for a more lavish lifestyleyou will probably need to save more.

Whether you’re just starting to save or are on your way to reaching $500,000, every dollar counts. Regularly contributing to retirement accounts, taking advantage of employer matching contributions and exploring other investment options can make a big difference.

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And for those who have already reached the half-million dollar mark, congratulations! You are in elite company. But remember, retirement is a long road. Keep saving, investing wisely, and planning for the future.

Bottom line? Saving for retirement takes time and…