Most people want a long, well-funded retirement.
And about 1 out of every 3 65-year-olds today will live past age 90, which means they will have plenty of time.
But will they have enough money? An “interest only” retirement plan removes one of the biggest fears about life after leaving your job: Will my money last me?
Because if you can save enough money now, you can fund your retirement by living off of your returns without ever touching your nest egg.
NerdWallet crunched the numbers, and we can tell you how much you need to save now to get $50,000 every year in retirement, without taking a bite out of your principal.
First, some ground rules. The numbers assume you will retire at 65 and have no money in savings now.
For investing, we assume an annual 6% return when you are saving and a more conservative 3% rate for your “interest only” retirement. We do not factor in inflation, taxes or any additional income you may get from Social Security and your 401(k).
Check out this video to learn moree.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.