Younger Workers May Be Sorely Underestimating Their Retirement-Savings Needs
If there were a single savings target that could guarantee financial security during retirement, we'd all know exactly how much to save. But that magic number just doesn't exist. In fact, you can plan and plan for retirement, but once you're there, you may find that your expenses come in higher than expected, whether due to home maintenance issues, health problems, or other factors you couldn't have predicted ahead of time. As such, the best most of us can do is save consistently for retirement and try to amass a reasonable amount of wealth.
But younger workers may be setting the bar too low in this regard. Millennials think they'll need $300,000 in savings to retire securely, according to a recent Transamerica survey -- meaning, that's the median amount younger workers feel they should accrue before leaving the workforce. And while it's certainly not a small sum, it also may not be enough to provide for the comfortable retirement today's workers are apt to want.
The typical senior spends about $46,000 a year in retirement, according to the U.S. Bureau of Labor Statistics. Now that's just an average, which means that if you're willing to live a more frugal lifestyle, you might spend less.
Source Fool.com
