The path to a luxury retirement is one paved with a lot of hard work — and even more savings. The good news, however, is that your journey to becoming a millionaire can start today.
Yes, you really can save a cool million for retirement — but your game plan will change depending on how old you are when you start.
Click through to see if you have what it takes to retire at any age.
How to Save $1M Starting at Age 25
The younger you are, the less you have to save each month to hit the $1 million mark — that’s the beauty of compound interest. That’s also exactly why you shouldn’t wait to get started. If you’re assuming a 10 percent return, you’ll need to stash about $158 every month to hit $1 million by 65.
The major takeaway is simple: Take advantage of your workplace retirement account. Set up automatic deductions so you don’t even need to think about saving and try to take full advantage of your employer’s match — it’s free money and it’s there for the taking.
How to Save $1M Starting at Age 35
By waiting a decade to start saving, you’ll have to put in more than double the effort — but that doesn’t mean it won’t be worth it. By waiting to start until you hit 35, you’ll need to set aside at least $442 a month — and that’s being generous with a 10 percent annual return.
If you’re staring at that million-dollar hurdle, the best thing to do is try and make up for lost time by slowly upping your monthly contributions — even if it’s just by a couple dollars here and there.
How to Save $1M Starting at Age 45
If you wait until you’re over 40 to start hitting your goal, it might be time for some more intensive measures. You’ll need to stash at least $1,317 a month to hit your seven-figure goal in time, and that can be hard to do if you have kids away at college.
If you’re still serious about your savings, consider downsizing your home and your lifestyle to help meet your goals.
How to Save $1M Starting at Age 50
If you wait until you’re 50 to start saving, it’s time to start sprinting towards the finish line. You’ll need a minimum of $2,413 per month set aside if you still plan to hit your million-dollar mark — and that’s assuming your annual returns will always work out in your favor.
Besides hopping in a time machine, your best bet is to take full advantage of catch-up contributions to your retirement accounts. In 2018, you’re allowed to add an extra $6,000 to a 401k, 403(b) or 457 plan for a maximum contribution of $24,500. Plus, you can bump up traditional and Roth IRA contributions by $1,000, bringing the total additional amount you can set aside in these accounts to $6,500.
Click over to learn what every 50-something should know about retirement.