I Want to Retire at 50 How Much Money Do I Need? – I used to think I’d like to retire at the age of 50 and was curious as to how much money I’d need. Then I started researching the negative effects of early retirement and now I’m less inclined. Not to take away from anyone’s dreams– but we’ll get to that in a minute.
I Want to Retire at 50 How Much Money Do I Need?
Being able to retire at 50 is not necessarily easily, especially considering how the economy looks these days. But if you start saving money early and plan carefully– it can be done. Granted, retirement at 50 is something only a small percentage of the population gets to enjoy. Statistics show that on average 92-120,000 people between the ages 55-65 retire each year.
Before I go into the details, I thought I’d also mention that while retiring at 50 may sound incredibly tempting it also can be detrimental to your health. The British Medical Journal has published studies that have shown that people who retire at 55 are 89% more likely to die in the next 10 years. That’s pretty scary. So I would recommend being financially able to retire at 50 but to plan for a hobby or to finally pursue your dream for your life’s longevity sake.
Instead of going on the retiring very early route, I thought I’d share some advice on retiring more towards your 50s.
Being aware of how much you need to save for retirement is extremely important information to have for your well being. Even if you’re a young professional, just starting your career– the earlier you begin planning and saving for your retirement the better off you will be. It may sound crazy to begin saving now when retiring seems so far away but once you understand how much you need to save for retirement, it will sound like a much better idea.
Ultimately we all need to ask ourselves,”How much do I need to save for retirement?”
The amount may shock you.
On average, you need to plan on spending 60-100% of your pre-retirement income each year of your retirement. That’s a lot!
For example: A retiree made $50,000 a year before retiring at the EARLY age of 50. Anticipating that they will live another 25 years, they decide to put aside enough so there’s about 80% of their pre-retirement income to spend annually.
80% of $50,000 = $40,000 x 25 years = $1,000,000 needed for retirement! Honestly, this seems like not even enough. If you have kids, you’ll probably need more money or just be willing to change your lifestyle. $1 million for retirement is fine as long as you have no mortgage or are living somewhere cheap or are prepared to spend no more than 40k a year.
If you’re thinking of retiring at the age of the 50, then chances are that you’re in a job that you don’t enjoy. Or maybe you’ve just been working hard and don’t want to drop dead at your desk. Whatever the reason, make sure that you plan on staying active and pursuing something with purpose after retiring at 50 for your mental/physical health’s sake.
Thanks for reading, we would love to hear your thoughts and comments. – I Want to Retire at 50 How Much Money Do I Need?