Eyeing retirement: How much money is enough after you leave a job?
Feb 2, 2023, 8:00 PM
According to a new report, 68% of parents with children over 18 have made some kind of financial sacrifice for their children. This begs the question, when should parents financially cut off their children? (Pexels)
(Pexels)
SALT LAKE CITY — Roughly, 4.2 million people voluntarily left their jobs in November, that’s according to a report by CNBC. So, the question begs to ask, how to know when it’s time to leave your job or if you have enough for retirement?
Shane Stewart, a certified financial planner with Deseret Mutual Benefit Administrators, joined Dave & Dujanovic with hosts Dave Noriega and Debbie Dujanovic to discuss this important question.
“It’s a great and scary question to ask because we are creatures of habit,” Noriega said. “We like waking up and knowing where we’re going and what we’re going to do.”
CNBC also reports the best way to get a raise is to make yourself part of the quit rate.
Leave a job for retirement
However, there are some people who are afraid to retire from their job because they aren’t sure how much they need to live off. The Wall Street Journal has reported that the number people need to retire on is $1.25 million. And that is a 20% increase from last year.
Dujanovic asks Stewart, “So that 1.25 million. Is that really the number we need, or can we get by on less than that?”
“You can get by on less than that,” Stewart said. “But you might need more.”
Stewart explains that for most Americans retirement is still a long way away. Additionally, it’s also a moving number based on the lifestyle you want to live.
“It’s very difficult to peg,” Stewart said.
“I feel like that 1.25 million, if that’s what most Americans feel they need in the bank, how do they get there?” Dujanovic asked.
“I mean most Americans would say (that’s) too much,” Stewart said. “‘I’m never going to make it, I’ll just keep working.’ And what they don’t understand is that all the pieces to the puzzle would probably patch together a 1.2 or 1.5 million.”
Stewart says if you add up what you have gotten from Social Security over the course of your lifetime, it could be between $500,000 and $750,000.
He also says it’s important to look at how you are going to live in retirement. Are you going to spend more or less?
Forbes reports that one-third of seniors will continue to work past retirement age.
Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.
Read more:
- Experts suggest increasing savings to prepare for retirement
- How much retirement savings should I have? | 7 retirement tips if you are late to the retirement savings game
