How much money do people need saved to retire?

CHATTANOOGA, Tennessee (WDEF) – How much money do people need to save to be able to retire?

“If you don’t feel like you’ve done enough, the best advice you can get is don’t retire when people say you should retire. I would max out Social Security and work until 70 to give yourself the best chance to save as much as you can,” said Blue Ridge Wealth Planners  John Vandergriff.

John Vandergriff from Blue Ridge Wealth Planners said anyone can saving for retirement.

“Anything that you can do today is going to be better than what you can do tomorrow. Anything that you can do tomorrow is going to be better than next week. The trouble a lot of people have is they have not ever done without things so they can have things later,” said Vandergriff.

He suggests saving 10 to 15% of your income into a 401k or another retirement account.

“Depends on if you wanna have a normal lifestyle or if you want to have a better than normal lifestyle. The more money you put away the more flexibility you have to choose that,” said Vandergriff.

If you can’t do the 10-15%, he said contribute at least up to your company’s match.

“Thrown away free money is a terrible thing and if you get to a point where you can start to do that you’re doubling what you’re making automatically when the market makes anything on it or not,” said Vandergriff.

Vandergriff also highly suggests automatic contributions as it is one of the most effective ways to save for retirement.

You’ve got 20% more income than you’ve ever had. You’ll turn around, if you don’t have a plan for what to do with it, and you’ll say where did all this money go. Money in your hand finds a way to leave your hand and be spent on something else.

He said people use $1 million as a goal and that might be enough for some but not enough for others.

“A lot of the decisions about retirement are largely based on what do you need this money to provide you,” said Vandergriff.

If you paused investing due to the pandemic he suggests if you’re able to start contributing again, to do so.

Vandergriff advises using a Roth 401k if it is available to you through your company as all the growth is tax-free.

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