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Benjamin Westerman SVP of Wealth Management Discusses How Much Someone Needs to Save for Retirement in 2023

A recent Bankrate survey found that more than half of Americans do not have enough saved for retirement.

Furthermore, 35% of Americans are actually significantly behind in their savings. For many years the thought was if I saved one million dollars by the time I hit 65, I should have enough to retire. Many retirement experts say that that is not enough now with inflation and other factors. It could be somewhere around the two million dollar mark. In the Fortune article, “Is $1 million enough to retire? These experts say no,” OneDigital Senior Vice President of Wealth Management, Ben Westerman, stated that a general rule of thumb for him is to aim to save 20 times your annual spending amount during your time in the workforce. He says that it can be easier to comprehend than it is to save 10-15 percent of your income each year with bills and other expenses.

By achieving this goal, combined with Social Security benefits, you can enjoy the same standard of living in retirement as during your working years. If you're not sure how much you spend annually, don't worry. You can confidently work backward and utilize a 4% to 5% withdrawal rate on your investments.
— Benjamin Westerman, Senior Vice President of Wealth Management, OneDigital Retirement + Wealth

Different advisers have specific benchmarks to hit before an individual retires. The important thing is to save early and often so that when you are looking to retire, you are prepared. It’s essential to have regular contributions during your working years to build a good nest egg.

To read the full Fortune article, please click here.

Want to read more about retirement savings? Check out our recent article on why you should not touch your 401(k): Three Reasons Why You Shouldn’t Cash Out Your 401(k).

Investment advice offered through OneDigital Investment Advisors LLC, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.