How much Retirement Savings Do I Need?

The Story of Dave and Alicia

Dave and Alicia are a couple in their mid-50s who are planning to retire in the next 10 years. They have been saving up for retirement for the past decade but are unsure if they have enough savings to last them through their retirement.

They decided to seek financial advice from ChatGPT and a financial adviser to help them determine how much retirement savings they need.

Real Life Examples

According to a report by Fidelity Investments, the company recommends that retirees save at least 10 times their salary by the age of 67. This should provide enough income to cover retirement expenses.

Another study by the Employee Benefit Research Institute (EBRI) states that a couple needs to have $1 million to $1.5 million saved up by the time they retire to sustain their lifestyle.

Additionally, the financial advisor recommended that Dave and Alicia should have a diversified portfolio of investments that provides a balance of risk and return to maximize their savings.

Some of the companies that offer retirement savings options include Vanguard, Fidelity, Charles Schwab, and T. Rowe Price.

Conclusion

1. It is recommended to save at least 10 times your salary by the age of 67 to sustain your lifestyle during retirement.
2. A diversified investment portfolio can help individuals maximize their savings.
3. Companies like Vanguard, Fidelity, Charles Schwab, and T. Rowe Price offer retirement savings options to help individuals prepare for their future.