If you’re making $75,000 a year, the thought of saving $1 million for retirement can seem daunting. Yet with a little dedication and time, you can get there regardless of your age.
As a rule of thumb, most financial advisors suggest you save 10% to 15% of your salary. If your goal is to get to $1 million, the percentage you need to invest will vary widely based on how old you are when you start.
NerdWallet crunched the numbers, and we can tell you exactly how much of your $75,000 you’ll need to tuck away to get there.
Just a few things to remember: these numbers assume you have no money in your retirement plan, that you will get a 6% return on your investments and that you will retire at age 65.
The math also does not account for potential pay increases, employer matches, inflation or any curveballs that life may throw at you. So plan accordingly.
Now, let’s dive into the figures.