Mistake no. 2: Underestimating how much they should save for retirement
The average boomer would say that $1 million is more than enough to retire comfortably, as a Natixis survey showed. Even if this survey discovered that boomers have a more realistic way of guessing how much they need to live a decent life compared to other generations, this amount of money is definitely not enough to live a healthy and comfortable retirement.
You must decide what a comfortable retirement lifestyle means to you, then put it on paper. Then, make sure you get a good idea of how long that money will last. Because if you ask boomers, they will say that they expect to live another 23 years, and that’s a very long time to plan your income for.
After deciding which kind of lifestyle you want to live, you can easily address the matter. You can’t just assume that $1 million is the magic amount that will solve the mystery, because in most cases, it’s not.
It’s true that $1 million might bring a little bit of market appreciation, as long as you stay invested for as long as you can. But you have to question yourself: Is this amount of money enough to provide for the lifestyle that I’m looking for in retirement?
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