(FinancialHealth.net) – You’ve been diligently adding money to your 401(k) account for years. Recently, you checked your balance and noticed you had $100,000 in retirement savings. Not too shabby for a hardworking employee like you.
Unfortunately, that $100,000 may not be as much money as you thought when you translate it into monthly income. Co-chairperson of the American Academy of Actuaries’ Lifetime Income Risk Joint Committee, Noel Abkemeier, explains that balance would only be about $500 a month for a married couple.
The video below explains how much you should have in your 401(k) as you age:
Saving for retirement, even when you have an employer who matches, can be confusing. President Donald Trump signed a bill recently that will make it easier to understand how far your savings will go. The Secure Act requires 401(k) sponsors to provide a monthly figure to demonstrate what their balance translates to.
Allowing workers to see a simplified version of their plan could make it easier for more people to hit their savings targets. The hope is that more Americans will be more prepared for retirement, so they can live a happy and comfortable life when they leave the workforce.
~Here’s to Your Financial Health!
Copyright 2020, FinancialHealth.net
