​I Want To Retire At 50, How Much Money Do I Need To Plan?​​

By: | 11/10/2021 05:18 PM ET

I Want To Retire At 50, But How Much Money Do I Need? If you plan to retire early, at age 50, it’s important to know how much money you will need to support a standard lifestyle when you leave the workforce. Social Security alone may not provide enough funds to live on.

Live frugally and save some funds. You can live on a strict budget and save enough to put into an IRA, a 401K, investments, or a savings account. For instance, you can wash your clothes in the washing machine and then hang them to dry, rather than using the dryer, but ask yourself: Is this what I want?

Sometimes you may not have a choice, but you need to decide how much is enough before you make any decisions to tap into your IRA or 401k account.

Avoid using credit for purchases, other than for a home or maybe a good, low-cost vehicle. Pay down your debt quickly and start saving that valuable cash. Money in the bank, or as an investment, can add up quickly.

Invest wisely. Use your company 401K options, start a personal IRA, or make a few investments if the economy is stable. Start saving early in life. Even if you wait until you are 30, you may have enough money to retire at 50.

Define your daily needs and make a separate list of the activities you want to to do later in life. Use the calculator to see what you will need each month to live on and to do a few fun things, such as travel or play golf every day.

Save as much as you want, but keep it realistic. Cut your expenses in half. If you drive a car to the grocery store for a gallon of milk, try riding a bicycle, or walking, if it is not far away.

Try to put funds away as often as you can, even if you experience a layoff, a loss of work because of injury, or if your business collapses. This might be harder to do, but if you contribute even a few dollars a month, you will be building up a fund to live on when you retire. You may have to delay contributing to the fund for a few months, or even a year, but always apply extra money to this fund because you’ll be 50 before you know it.