Posts tagged: retirement

Bloomberg Sunset Index: the countries that most at risk from aging populaiton

The world’s working-age population is shrinking faster than expected, leaving fewer people to support a growing number of seniors, according to the Bloomberg Sunset Index.

Bloomberg Sunset Index uses statutory retirement ages in 178 nations. Conventional measures of old-age dependency calculate the ratio of people ages 65 and older with those of working age: 15 to 64. But many people stop working well before 65: Men in 66 percent of the 178 countries Bloomberg evaluated and women in 78 percent can begin receiving retirement benefits earlier.

So the Bloomberg index calculates dependency based on each country’s statutory pensionable age, revealing substantial differences in some places with 2016 estimates from organizations including the World Bank and United Nations. For instance, Nigeria, with a statutory pensionable age of 50, has only 4.8 workers supporting each senior, compared with 19.4 as indicated by conventional measures. Russia has 2.4 instead of 5.1, and Colombia has 4.5 instead of 9.4.

 

 

As seniors increasingly outnumber people still in the workforce, pressures rise on investment pools, medical systems and funds to build economies for future generations. Read more »

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Want To Retire With $1 Million? Here’s how to do it.

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:

Needed Savings Chart

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 Read more »

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