Here’s How Much You Should Save Each Month To Retire by 75

katleho Seisa / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

There are two key elements to building a large retirement nest egg: time and consistent investing.

Over time, compound interest can build even small amounts into significant savings, particularly if you’re delaying your retirement until age 75. That’s a full 8 years after what the Social Security Administration considers “full retirement age” for those born in 1960 or later. While starting early is the best way to generate long-term wealth, your choice of investments will also play a role.

To determine how much you should save each month to retire by 75, GOBankingRates analyzed what it would take to reach $1 million or $2 million in savings starting at various ages, using sample annual returns of 6% and 10%.

Age 20

• Monthly savings to reach $1 million, earning 6%: $193
• Monthly savings to reach $1 million, earning 10%: $35

• Monthly savings to reach $2 million, earning 6%: $386
• Monthly savings to reach $2 million, earning 10%: $70

If you have the foresight to start an investment plan at age 20, your chances for a sizable retirement account by age 75 are high. With even less than $100 per month, you’ll likely be able to build a seven-digit nest egg over time.

Age 30

• Monthly savings to reach $1 million, earning 6%: $363
• Monthly savings to reach $1 million, earning 10%: $96

• Monthly savings to reach $2 million, earning 6%: $726
• Monthly savings to reach $2 million, earning 10%: $191

If you start your retirement savings program at age 30, you’ll be 10 years behind where you would be if you started at age 20. However, you’ll also likely be earning more money, helping to make up the time that you’ve lost. A $1 million or even $2 million nest egg is still within reach if you start funneling more of your money towards your investments.

Age 40

• Monthly savings to reach $1 million, earning 6%: $702
• Monthly savings to reach $1 million, earning 10%: $264

• Monthly savings to reach $2 million, earning 6%: $1,404
• Monthly savings to reach $2 million, earning 10%: $527

Once you reach age 40, you still have a few decades to save up for retirement, but things won’t be as easy as when you were younger. But if you’re not retiring until age 75, you still have 35 years for compound interest to build, doing a lot of the work for you.

Age 50

• Monthly savings to reach $1 million, earning 6%: $1,443
• Monthly savings to reach $1 million, earning 10%: $754

• Monthly savings to reach $2 million, earning 6%: $2,886
• Monthly savings to reach $2 million, earning 10%: $1,508

The good news about reaching your 50s is that you’ll likely be in your peak earning years. The bad news is that you’ll have less time for your investments to grow. Waiting to retire until age 75 helps considerably, however, as you’ll still have 25 years to build your account value.

This is the time to maximize your retirement contributions by taking advantage of the catch-up contributions that are allowed for IRA and 401(k) participants after age 50.

Age 60

• Monthly savings to reach $1 million, earning 6%: $3,440
• Monthly savings to reach $1 million, earning 10%: $2,413

• Monthly savings to reach $2 million, earning 6%: $6,880
• Monthly savings to reach $2 million, earning 10%: $4,826

At age 60, you won’t have much time to build a seven-figure retirement plan, although retiring at age 75 will certainly help. Still, if that’s your plan, count on setting aside thousands of dollars per month if you want to crack the $1 million barrier by the time you retire.

Share This Article: