Categories: Retirement

How to Save $1 Million for Retirement

HOW MUCH YOU SHOULD SAVE FOR RETIREMENT

Aiming for this level of savings is a good starting point, said Karen Kruzel, a fiduciary investment advisor at Unified Trust Company in Lexington, Ky.

“Using the ‘4 percent rule’ — drawing 4 percent annually from retirement savings — this level of savings, coupled with Social Security benefits, will probably meet all spending needs for the long duration of retirement,” Kruzel said. “However, $1 million may not be appropriate for everyone.”

If you plan to live an expensive retirement lifestyle that includes frequent travel or a vacation home purchase, you will likely need more than $1 million. Other people might need less, assuming they’re frugal in retirement and remain in good health.

“No two people will have the same exact retirement needs,” said Chuck Mattiucci, a financial advisor with Fort Pitt Capital Group in Pittsburgh, Pa. “There is no one-size-fits-all approach to retirement planning.”

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