When should you start thinking about your retirement? Should you devote your youthful years preparing for a comfortable end? Here’s the shocking truth about the cost of retirement and the sacrifices made for a financially secure future. Before reading the facts and figures below, please keep in mind that trading currencies on the foreign exchange market offers no guarantees of profit. FX News does not suggest that trading is a solution to your retirement needs.
Today’s allocation of wealth
Most of us have heard the statistic claiming that 1% of the population owns 99% of the world’s wealth. Reversing the numbers sounds far more concerning. 99% of the population share the remaining 1% of the world’s wealth.
In the United States of America, a report by the GOA demonstrates a concerning trend for people heading into retirement, so we at FX News decided to summarise this huge report to give our readers a heads-up.
Retirement savings at an all-time low
Americans aged 55-64 are reported to have just over $100,000 in retirement savings on average. Such an amount would yield an interest return of around $300 per month. Hardly the nest egg we all dream of. So, how much do you have right now, and how much will you have when you hit 55?
There are so many options when planning your retirement. You might want to lock your savings, set up a pension scheme, or try investing, the list is long. Currency trading is growing in popularity, and many people enjoy the risk/reward that comes with CFD investing, but it takes time to master. If you’re looking for an instant easy fix, you’re probably going to be disappointed. Whatever you decide to do, here are some numbers that might just motivate you into action… while you still have time.
It’s perhaps a little early to think about retirement, or is it? If you skipped college, then you probably won’t have student loans, but you’ll probably have a low-end salary. You’ve got 40 years to create a fund for your twilight years. Sounds easy, but consider this. If you’d like to retire with $500,000, you’ll need to put away $700-$900 every single month from now on, depending on future interest rates.
Hopefully, the bosses promoted you a few times and you’re earning more now. But, now you might have a home loan, school fees, a second car. If you haven’t started putting away some gold for the golden years, then you’ll need to put away $1200-$1400 per month for that retirement fund. The average American has around $40,000-$50,000 saved by their mid-thirties.
Reputable investment and pension services suggest saving 18% of your income at the age of 30, rising to 23% by the age of 35. Not an easy task with kids and a mortgage.
At this point in life, you’ll probably have the highest salary or profit you’ll ever get, and your income should be the envy and goal of every 30+ colleague. A bigger house now, mortgage too, college fees are looming, and your general lifestyle costs more now. Retirement is closing, but not on the radar just yet. This decade is where most people wake up and realize they are very far behind, with average savings of around $60,000 to $65,000. If you are in this group, you should have saved around four times your annual income by now.
You’re approaching the end of your career. Some lucky few are heading into retirement early. Unless you are Chief Executive “Something”, you might soon find yourself on the list of employees in need of replacement. Many companies prefer youth over excessive experience, since a single person is more likely to stay late and work weekends. Costly medical and dental issues might start showing up for an unexpected drain on finances too.
If you are one of those people who already fell behind, don’t feel so bad. It’s very common. One suggestion would be to supplement your income with another financial activity. Another option would be to risk your current savings and start a new business with the goal of a passive income. Either way, the best time to start is today.
Consider trading foreign currency CFDs
Unlike starting a business, trading contracts for difference (CFDs) on the forex market can start with a very modest deposit. The idea is to start with the demo account and get familiar with how to trade, and then move to small real orders. Using risk management strategies it is possible to build a portfolio over time, and if you consider the compound effect when making your financial projections, your equity could grow into something of significance.
Exness provides numerous tools and support to give a new trader a great start. Initial signup can be done in as little as 10 minutes, and access to the trading platform is immediate after your account is verified. Find time to give it a try. See if you have an eye for spotting a trend. The demo is risk-free and Exness’ real accounts offer instant automated withdrawals.
Just keep in mind, there is always an element of risk when speculating on the foreign exchange that can cause unexpected losses. Again, trading should not be considered as a solution to financing a retirement fund.
Register for free and trade CFDs from home
Not sure how to get started? No problem. Follow this step-by-step guide.