What is your current income? Why do you say your salary has stagnated? Because if it is really so, you are in deep deep trouble. With inflation, your stagnated income will decrease in real terms every year, meaning you will not be able to save $30k pa. Your net worth of $2.3m now might even reduce by the time you reach 60.
An inflation rate of 3% pa will reduce your net worth by half after 20 years when you reach 62.
Best to upgrade skill to get higher pay or plan to work beyond 65.
3% inflation fallacy hurts retirement savers - MarketWatch
Quote:
Originally Posted by Unregistered
Underperforming 44, 42 yo couple. Total net worth only $2.3m. Annual savings $30k pa. Salary has stagnated. Hope to retire at 60. By 60, we should have a net worth of $3m. We will need to downgrade from our terrace house (currently worth $2m) to a studio condo (next to an MRT station) when we retire. Will also sell our car and take public transport.
Any couple in their 40s has a net worth lesser than us? Are we doing badly? |