Don’t worry if you don’t get the maximum Social Security benefit. Do this instead | Smart change: personal finance
In fact, imagine you could save $ 500 per month for your retirement over 40 years. If you were to invest your savings in stocks, you could get an average annual return of 8% in your pension plan because it’s a few percentage points below the market average, leaving you with a nest egg of one. worth just over $ 1.5 million.
Extending your savings window or monthly contribution could leave you with even more money than that. Save $ 500 per month with an average annual return of 8% for 42 years, and you’ll end up with over $ 1.8 million. Or, stick to that 40-year window, but increase your monthly contributions to $ 700, and you’ll have close to $ 2.2 million.
Now, having a bigger nest egg doesn’t mean you should give up increasing your Social Security benefits. But it might make sure that you don’t get stressed out that despite your best efforts, the maximum monthly benefit just isn’t attainable.
Set realistic goals
There are a lot of things that need to be put in place for you to qualify for the maximum Social Security benefit. But remember, even if that doesn’t happen to you, you might still manage to get an edge close to that maximum $ 4,194. And if you develop a smart ranking strategy while focusing on building a nest egg, you’ll set yourself up for a very comfortable retirement, financially speaking.