We often hear people say, “When I have one million dollars I will retire.” This does not just apply to people in their 50s and 60s, as ‘retire’ really means not having to work for income. No matter how old you are, you might want to spend less time on work and more time focusing on causes we care about like traveling the world, starting a company or simply spending time with your loved ones.
But for most of us, this is an aspirational luxury. The average retirement savings balance of Americans between the ages of 40 and 55 is a meager $14,500, and the approximate amount the average American needs to retire comfortably is $375,000, according to “Rescuing Retirement” by Tony James, President and COO of Blackstone and Teresa Ghilarducci, professor of Economics at The New School for Social Research. The problem is even more severe for the lower income population as they will very likely face poverty or near poverty in retirement.