Investors at 60 are struggling to save enough for Social Security benefits expected at 70. To accumulate sufficient funds for Social Security, financial advisors recommend investing $400-500 per month for the next 10 years, assuming a 7% annual return.
A financial planner says saving $1 million by age 70 is 'a pretty realistic goal', with the average annual Social Security benefit being around $38,000. However, critics note that a person must save around 15% of their income from age 60 to 70 to accumulate sufficient funds for Social Security. Financial experts stress that achieving the goal of replacing one-third of pre-retirement income requires a well-thought-out long-term strategy.
Analysts say that saving for retirement should begin much earlier in life, with some experts recommending that individuals start investing for retirement from their early twenties. By starting to save earlier, an investor can make the most of compound interest and accumulate sufficient funds for their retirement goals.