We recently looked at how much money you would need to be saving each month in order to be able to retire at 65 with a million dollars assuming you started from zero. Now, here is how much you should have saved up already at different ages in order to hit the goal of being a millionaire retiree. Assuming a 6% annualized rate of return and a monthly contribution of $400 starting at the indicated age, this chart shows the savings balance you need by that age in order to get a total of $1,000,000 by the time you are 65 and ready to retire:
A 20 year old under these conditions would need to have nothing saved up — putting in $400 a month at a 6% return will get them about $1,113,851 by the time they are 65, even with nothing in the account to start with. Meanwhile, if a 40 year old wants to retire with a million dollars with our assumptions, they need to have already saved up $161,573. Naturally, you need less already saved up at a given age if you can put more into your account on a monthly basis. The following table shows how much you need to have saved at each age for a range of monthly contributions, again assuming a 6% rate of return:
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