Saving for retirement starting in your 20s could be key to achieving financial stability by the time you reach retirement.
To illustrate that idea, the Online Master’s in Analytics program at American University developed the following infographic to show some of the current financial trends among retirees. The infographic shows that the average 50-year-old has less than $43,000 in savings, and 38 percent of Americans don’t save anything for retirement.
That’s scary news when you consider the increasing cost of health care. According to the infographic, a couple over age 65 can expect to spend $218,000 in medical treatment over 20 years.
Younger generations can learn a lesson from these trends by anticipating monthly costs in retirement now so they can begin saving to meet those future requirements. The infographic includes a chart that shows how much a person will need to save to cover expected monthly expenses from $1,000 to $10,000 for both 20- and 30-year projections.