How Much Do I Need to Retire?
Want to watch it later? Send the lesson to your inbox.
In the end, we all just want to know we're doing okay financially. And, if we're not doing as well as we'd like, we want to know what we need to do better. So, this lesson presents a few easy-to-remember financial benchmarks. But more importantly, it reminds you not to panic. Because no matter who you are or where you started, we believe everyone deserves a shot at financial freedom.
Money makes the world go round. Well, that and the sun's gravity. But also money.
So we're gonna give you some conventional wisdom on what it looks like to be financially on track for retirement at any age.
First step: Don't freak
What we don't want you to do is freak out if you aren't there yet. Because if we're being really honest, most people aren't on track. And, even the ones who are have gotten knocked off the track once or twice by this little thing we call life.
Second step: Know your milestones
Okay, so everybody take a deep breath. And hold it. Now slowly let it out. Then take a look at this chart.
By age 35, you should have twice your annual salary saved. By age 40, you should have three times your annual salary saved. By age 65, you should have eight times your annual salary saved.
Third step: Remember not to freak
The point isn't to throw giant numbers out there and make us all feel terrible about ourselves. There's a formula behind it. It assumes you want to retire at 65 and that you'll need a nest egg to live on for the next 20 or 30 years after you stop working.
So these numbers reflect both something you'll want, and something we believe you can achieve. Fact is that most people never get a great financial education, so it's rare to see these numbers for the first time and find that you're hitting the mark.
Last step: Don't stop now!
We made this course to set you on the right path. And you should have everything you need to start today, but if you still have questions, you can reach out to one of our financial advisors. We're here to help. Because whether you become a client of ours, or not, we know that you're gonna take control and chart your own path to a future of financial freedom.
Congrats and thanks for sticking with me until the end. Now go click that Get Started button and I'm gonna hop out of this kiddie pool. I just sorta need to be in water when I'm talking about finances. Can I grab a towel? Does anybody have a towel?
Wealthsimple. We help make wealth easy...er.