Savings You Need to Earn $80K, $90K, $100K in Interest for Retirement

While the thought of funding your retirement can be daunting, you’ll surely thank yourself later if you start planning now. It’s never too early to start thinking about retirement, and it may not be as difficult as you think.

Retirement usually involves replacing the annual salary from a job with other sources of income to maintain your current lifestyle. While Social Security can cover part of your budget, there are understandably reasons to be concerned about how much you might receive from Social Security when you retire. The rest of your money will most likely have to come from your savings and investments.

CNBC crunched the numbers, and we can tell you how much you need to save now to have $80,000, $90,000 and $100,000 each year in retirement, without taking a bite of principal.

More from The New Road to Retirement:

Here’s a look at more pensioner news.

First, there are some ground rules. The figures assume that you will retire at the age of 65 and that you currently have no money in savings.

Financial advisors typically recommend gradually changing the mix of investments in your portfolio to become more conservative as you approach retirement. But even in retirement, you’ll likely still have a mix of stocks and bonds, as well as cash. For investment, we assume a conservative 6% annual return while working and an even more conservative 3% rate during your “free” retirement.

We also do not take into account inflation, taxes, or additional income you may receive from Social Security or your 401(k) investment plan.

We have a full breakdown of how much you need to save now if your goal is to reach $80,000, $90,000 or $100,000 each year in retirement.

See the video above to learn more.

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