What Percentage of American Retirees Have A Million Dollars.Achieving R$1 million in accumulated investments means much more than having a good amount of money. As a concept and dream of life, this can be associated with the idea of a comfortable life, without the need to resort to other sources of income after retiring.
What Percentage of American Retirees Have A Million Dollars.
According to a recent survey by the Transamerica Center for Retirement Studies, only 18% of American retirees have saved $1 million or more for retirement. This number varies depending on factors such as age, income, and location.
For example, the percentage of retirees with $1 million or more in savings increases with age, with 31% of retirees aged 65 and older having saved $1 million or more. Additionally, retirees with higher incomes and those living in high-cost areas are more likely to have saved $1 million or more for retirement. However, overall, the majority of American retirees have saved less than $1 million for retirement, with 44% having saved less than $100,000.
Is it possible to have a good retirement with R$1 million?
To really know if it is possible to have a good retirement with R$ 1 million, the investor must keep in mind what his goals are . In other words, you need to define how much he would like to receive when he retires and for how long.
For example, if you want to make monthly withdrawals of $10k, it will take just under 10 years for your starting equity of $1m to run out – discounting inflation and assuming a real rate of 3% per annum on the portfolio.
Thus, in the case of a person who retires at 60 and intends to enjoy this monthly amount for at least another 30 years, it would be necessary to accumulate more than double the initial million.
Furthermore, maximizing earnings to increase the yield on allocations requires greater exposure to equities. Depending on your risk tolerance, this may not be the best strategy for your investments.
Therefore, it is possible to retire with BRL 1 million and, thus, achieve your financial goals with peace of mind. However, enjoying the fruits of the financial income of that initial million for the rest of your life is a less sustainable scenario – at least, for most Brazilians.
How to increase the value of this income?
Regardless of the fact that R$ 1 million is not enough to maintain the lifestyle intended by some investors, it is possible to increase the possibilities of earnings. Just apply the right strategies.
Through diversification , the investor has access to the most suitable assets for his/her risk profile to compose the portfolio. Allied to this, it is essential to be aware of real interest rates, that is, above inflation, to avoid loss of purchasing power over time.
