A new survey finds $650,000 to be the median estimate of how much money Americans think will be needed in retirement.
But one expert calls it unwise to come up with an arbitrary number.
The $650,000 finding comes from a Bankrate.com survey of 1,000 adults, USA Today reported.
Financial expert, author, and speaker Chris Hogan says the figure really depends on someone’s lifestyle, their debt load, and their aspirations for retirement.
“Do they want to travel, spend time with family and help their community?” he explains. “Anytime they try to come up with an arbitrary number, it’s dangerous because we all have things we want to do and how we want to do it.”
Hogan’s website offer a free tool allowing people to choose how they want to live in retirement, along with how many years they have until retirement and how much they have saved. It’s called the “Retire Inspired Quotient.”
“The information will show them the number they would need based on what they want to live on per month,” he explains. “But then it takes it a step further and shows them how much they need to be investing now to get there.”
If you are years if not decades from retiring, Hogan says it’s important for you to start putting back something for the future even if it’s a little money at a time.
Meanwhile, older generations should share their experiences with young people to help them avoid the hardships they have endured during retirement.