Average 401(k) balance: $11,800.
Median 401(k) balance: $4,300
SOURCE: NerdWallet Feb 7, 2020
If this is YOU, and YOU are 35 years old, YOUR average balance or Median balance could double or triple by the time you actually retire at age 70 which is doubling your current age... this means that the average balance in YOUR 401K could increase to $23,600 (doubles once) or even $47,200 (doubles twice)...
NOW, let's round off the doubling twice amount and YOU are left with about $50,000.
NOW, let's suppose YOUR employer's contribution increases YOUR 401K to $100,000.
HOW LONG will YOUR $100,000 last?
The CURRENT AVERAGE Social Security payout in 2020 is $1,800/month.
By the time YOU reach retirement age, it is estimated that you will only receive 80% of what is being received today, which means you will receive only $1,440/month.
Let's suppose that you are married, now that Social Security allowance for YOU and YOUR SPOUSE is $2,880 or rounded off is $3,000/month.
CURRENTLY, the average cost of living across the USA is $5,000/month. So, you will need another $2,000/month or $24,000 each year and $240,000 over a decade...
But,
YOUR 401K is only $100,000 and therefore will only last YOU and YOUR SPOUSE less than 5 years, assuming your money earns no INTEREST... if we add INTEREST then YOUR money will probably last you 5 years...
DOES THAT SOUND LIKE A
GOOD PLAN TO YOU???
