“Retired Inspired” author Chris Hogan on Thursday said millennials need to prepare more for retirement and will need more than $200,000 to retire.
According to a survey by Aperion Care, 34% of millennials believe they will need $200,000 or less to retire comfortably. Aperion Care also referenced AARP, which said, “In order to live off of $40,000 a year, a retiree needs to save about $1.18 million for a 30-year retirement.”
“It’s depending on your lifestyle and so everyone is going to be a little bit different. But to these millennials I still have work to do. If they think $200,000 is enough, I’ve got to give them a wake-up call,” he told FOX Business’ Maria Bartiromo on “Mornings with Maria.”
According to the same survey, 61% of millennials expect to live longer than their parents and on average expect to live to age 81. Social Security found that a man reaching age 65 can expect to live on average until age 84.3, while women turning 65 years old today can expect to live on average until 86.6 years old.
Hogan created a free online tool to help people of all ages figure out how much they need to save for retirement.
“I developed a free tool called the R:IQ at my website ChrisHogan360.com, where you plug in some numbers to figure it out. For example, how much do you want to live on per month, and how many years do you plan to retire, and how much you have saved. That gives you a ballpark awareness of that big number, but then it will also show you how much you need to be investing now to get there,” he said.
Hogan strongly feels that putting money into the stock market can help all Americans reach their retirement goals.
“Putting that little bit of money away, it’s going to grow for you. Compound interest works, so your money can’t be on the sideline, you have to get it in the game,” he said. “Investing is like riding a rollercoaster. You are going to have some ups and some downs, but at the end of the day you know your plan and what you’re investing in, so you know you’re going to come out okay,” he said.