Just Like Getting 50% More From Social Security
Saving $8,000 a year is a major boon for almost anyone, but it can be especially meaningful to retirees on a fixed income. Given that the average Social Security benefit comes out to over $15,000 a year, it’s the equivalent of freeing up over half of your monthly check.
Or, to put it another way, a $500,000 nest egg earns about $5,000 for every 1 percent of investment returns, so saving $8,000 a year is essentially like finding another 1.6 percent return on your portfolio every single year. If you found a savings account that boosted your interest rate by almost 2 percent, would you pass it up?