Started late (lost 8 years of saving) but have been putting triple the standard contribution in recently (always was maxing out employer contributions) as my disposable income increased and I realised I was wasting money.
In USA money, at 42 I have over $190k in the pension (starting to make great yearly gains) and $580k house fully paid.
I don't know if this is good or not tbh, I feel it isn't enough as predictions are anything from $800k to $1.3M.
That's ok you started late. It's never too late. Always happy to see people make some money.
To estimate what is enough, try to do an overall projection how much you got when you retire. Estimate your annual costs to live. And then estimate if your investments gains can cover it. Make sure to take into account paying captial gains taxes. In a perfect world, you'll have lots of money and any avg investment gains you get net of taxes can cover it AND your pot of money still doesnt go down. Be conservative if you want. I dont include my property equity, though technically I could always sell it, pocket the money, and rent. I only consider my loose cash, investments and retirement funds.
That's not realistic for everyone though. Some people might have to naturally wind down and drain their savings, but hopefully it lasts as long as possible till you kick the bucket. Personally, I want my money still going up when I retire and pay living costs. I dont want the winding down method. But that requires me to build a bigger pot to cover that way of living. Dont forget to add in any gov free money you get too. In Canada, at 65 I think everyone gets around $1,000/mth. So there's another $12,000 pre-tax. I exclude that from my equation as I consider that bonus money, just like any inheritance I get when my parents die.
For those of you who arent sure about investments and retirement funds and want to do it cautiously without following the volatile stock markets, dump your savings into some broad based index/ETF funds. Something basic like tracking the S&P 500 or a fund that covers top 50 companies or whatever.
Take advantage of your company if they do retirement contribution matching. It's free money. If you can float it, max it out. If they are willing to match up to 5%, then try to scrape up 5% too. You just got a free 5%.
It is safer, but IMO DONT DO IT.... put your funds into some kind of money retirement market fund paying 2%. There will be ones that are ultra low, but theoretically ultra safe. Dont bother being that risk averse. To make some money you got to gamble a bit on some riskier stuff. If you are that risk averse, might as well find a high interest savings account you can lock in a rate for 4% so it's accessible.
