In this article, we will discuss the . You may skip our detailed discussion on senior living communities and see the While there is no consensus on the ideal nest egg for a comfortable retirement, The Charles Schwab Corporation (NYSE: ) recommends that the generic rule should be to retire with 25 times your annual withdrawal for the first year of retirement. In addition, The Charles Schwab Corporation (NYSE: SCHW) states that the average retiree can expect to spend 75% to 80% of their pre-retirement income to maintain their standard of living.
Unfortunately for many Americans approaching retirement, this figure might seem unattainable. According to data by the Federal Reserve Survey of Consumer Finances (SCF), US adults have a median of just $87,000 in retirement savings. Furthermore, among those looking to retire in the next 10 years (currently aged between 55-64), the median savings are $185,000.
While this does not take into account retirement annuities, public & private pensions, and retirement assets, it highlights how upcoming generations might be less financially prepared for retirement than their predecessors. Furthermore, Social Security Administration’s annual trustees report reveals that Social Security’s combined funds paying retirement, disability, and family funds will be able to pay benefits in full up to 2035. The program is expected to pay 80% of scheduled benefits after.
Thus, those looking to rely on social security checks might only be able to claim a .