“Many people believe they have a plan for retirement – but there is a big gap between expectation and reality.”

by Brian O’Connor

“How much do I need for retirement?

“For many, it’s a question that ranks far down the list of more urgent priorities, like buying groceries, paying rent or student loans. But chances are, it’s more than you’d think – due to a number of reasons that reveal how our expectations of our later years don’t match up with the realities of living on a fixed income.

“Outsize expectations

“Take the US, for example.

“Fewer than half of American baby boomers have more than $100,000 in retirement funds, even though one estimate puts healthcare costs in retirement for the average couple at $280,000. One Merrill Lynch report suggests that one in five Americans don’t know how much money they’ll need in retirement and that most under-save by nearly 20%.”

Read this article in its entirety at the BBC, click here.