Saving, investing and even retirement rely on math. It’s not so scary when you look at it that way, it’s just a math problem. Even if your math skills are a little rusty, there are resources that can help us plug in the variables and find an answer. That’s what CNBC’s Katie Brigham and her partnership with Nerd Wallet did when they calculated how to save a million dollars for a retirement nest egg.
Building a Retirement Nest Egg
It’s important to remember that the actual numbers don’t matter. What is important is the mathematical process. We may not all achieve a million dollars in savings, especially with inflation nipping at our heels. But we can do what we can to save what we can. The key lessons to learn here are to start now; no matter your age, or your retirement status, you should start saving now.
If you’re 65 and retired, you can still earn by saving what you can and investing what you can. We specify “what you can,” because not everyone can save and invest at the same rate. If we follow the math, we can still earn a positive amount.
If you’re nearing, at, or past retirement and you don’t have enough savings please don’t feel disheartened. Almost 40 percent of American seniors retire with little to no savings at all, but this doesn’t have to be the norm. The math in the video doesn’t factor in other important variables: other savings, taxes, inflation, etc.
In math, other variables are important because they effect the answer you get. When it comes to building retirement income, there’s more than one way to earn than saving every month. What’s important is that you understand every variable (retirement saving accounts, investments, benefits, and assets and liabilities) and understand how they affect one another.
The Council for Retirement’s mission is to protect Social Security, so regardless of your savings you still have your well-earned benefit. Live doesn’t end at retirement, and nether does saving for the future. Protect Social Security, save well, and enjoy.