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 How Much Should You Save For Your Retirement? 

If you are looking for the best gold IRA Company to help you inflation proof your retirement savings we recommend 

How Much Does the Average American Save for their Retirement By Age Group?

Saving money is essential for a comfortable retirement. You will enjoy peace of mind as you will be certain that you will be able to maintain a reasonable standard of living even after you stop working. One issue you may face when saving money for the long-term is inflation. The economy is set up in a way where one dollar today will be able to purchase fewer goods after some time. Central banks around the world target an inflation rate of about 2% per year, and this guarantees you that your saved money will have lower purchasing power as time goes by.

While this is the target inflation rate, the economy will periodically experience excessive inflation, which can almost deplete the value of your savings. So, how can you inflation-proof your investment? And what are the average retirement savings at different age groups? Let’s find out.

Average Retirement Saving By Age Group?

According to the Transamerica Center for Retirement Studies, these are the average retirement savings in different age groups:


• Americans between the ages of 20 and 30 save an average of $16,000 for retirement
• Americans between the ages of 30 and 40 save an average of $45,000 for retirement
• Americans between the ages of 40 and 50 save an average of $63,000 for retirement
• Americans between the ages of 50 and 60 save an average of $117,000 for retirement
• Americans between the ages of 60 and 70 save an average of $172,000 for retirement

Saving money is essential for a comfortable retirement. You will enjoy peace of mind as you will be certain that you will be able to maintain a reasonable standard of living even after you stop working. One issue you may face when saving money for the long-term is inflation. The economy is set up in a way where one dollar today will be able to purchase fewer goods after some time. Central banks around the world target an inflation rate of about 2% per year, and this guarantees you that your saved money will have lower purchasing power as time goes by.

While this is the target inflation rate, the economy will periodically experience excessive inflation, which can almost deplete the value of your savings. So, how can you inflation-proof your investment? And what are the average retirement savings at different age groups? Let’s find out.

How Much Do You Need to Save for Retirement in the USA?

Although these are the average retirement savings for individuals in the USA, they may not match the recommended savings. In this list, we will look at the recommended retirement savings as noted by the Federal Reserve SCF. For this list, we will have smaller age groups.

• Americans between the ages of 18 and 24 should try and save a minimum of $4,745.25 for retirement
• Americans between the ages of 25 and 29 should try and save a minimum of $9,408.51 for retirement
• Americans between the ages of 30 and 34 should try and save a minimum of $21,731.92 for retirement
• Americans between the ages of 35 and 39 should try and save a minimum of $48,710.27 for retirement
• Americans between the ages of 40 and 44 should try and save a minimum of $101,899.22 for retirement
• Americans between the ages of 45 and 49 should try and save a minimum of $148,950.14 for retirement
• Americans between the ages of 50 and 54 should try and save a minimum of $146,068.38 for retirement
• Americans between the ages of 55 and 59 should try and save a minimum of $223, 493.56 for retirement
• Americans between the ages of 60 and 64 should try and save a minimum of $221,451.67 for retirement
• Americans between the ages of 65 and 69 should try and save a minimum of $206.819.35 for retirement

How much do you need to save for your retirement taking in inflation

How Inflation Eats Away at Your Retirement Savings?

Inflation is not something we think about on a day-to-day basis, and this is because it happens at a very slow pace. As noted earlier, central banks and governments around the world target a specific inflation rate every year. This encourages people to spend or invest money and discourages regular savings. At an individual level, inflation will determine how much your savings will be worth after some years. At the same time, retirees are likely to spend their money on various health issues, and they will usually be charged more because of their age. This means you will have less money to spend at the end of the day.

To illustrate how much inflation can eat away at your retirement savings, you should consider the fact that in the USA, prices rose by about 20% between 2009 and 2020.

With this information in mind, you will have to ensure that your retirement savings are not just sitting in the bank and are instead generating extra money in an investment. Let’s look at how a Gold IRA can help to inflation-proof your retirement savings.

Inflation Proof Retirement Funds Using a Gold IRA

To make sure your retirement savings hold their value when you finally retire, you will need to use them to make an investment. One of the best options, in this case, is to place your funds in a gold IRA. This is simply a gold Investment Retirement Account, and it will literally hold your retirement funds in the form of gold. These investments may also turn part of your nest egg into other precious metals. Historically, gold has proven to be a great hedge against inflation as it typically appreciates at a higher price compared to the inflation rate. While this investment can be great for your retirement, you should note that it will concentrate your funds in a single asset class.

Is it Really Safe to Invest in a Gold IRA?

Before the modern monetary system was adopted in 1971, the US dollar was backed by gold, meaning anyone could exchange their currency for an equivalent amount in gold. Since all other world currencies were backed by the US dollar, they could also be exchanged for gold at any time. Although this system broke down, gold has still maintained very high value and is a go-to investment during times of economic uncertainty.

Here is a summary of the price of gold through the decades:


• In 1960, gold was trading at a price of about $35 an ounce.
• In 1970, it still had a price of $35 an ounce as this was fixed by governments around the world.
• In 1980, gold had shot up to a price of about $850 an ounce.
• In 1990, the price of the asset has adjusted back to about $360 an ounce.
• In 1999, major banks agreed to limit the sale of gold, and this brought the price down to about $279 an ounce.
• In 2010, the price of gold had gone up to about $1,113 an ounce.
• In 2020, gold was trading at a price of about $1,769 an ounce.

While the price may seem to be shifting from one decade to another, it is worth noting that experienced investors are able to determine the best times to purchase the asset. With a gold IRA, professionals will know the best prices at which to purchase gold, so you don’t need to worry about short-term price fluctuations. In the long run, the asset will be able to keep up with inflation.

INflation proofing your retirment with gold as a safe bet
usd versus gold

How is the Price of Gold Related to the USD?

Gold is traded in many countries and in many currencies, but in international markets, it is priced in the US dollar. Therefore, in international markets, one key factor that can determine the price of gold is the state of the US dollar. Whenever the USD is performing poorly, investors will move to gold as an investment as this is considered a good hedge against inflation. This further worsens the state of the USD since it lowers its demand in international markets.

For illustration, in 2020 during the Covid-19 pandemic, the USD performed poorly because of the lockdowns and movement restrictions. This lowered investor faith in the state of the USD, which meant that more people added gold to their portfolios. In this particular year, the price of gold shot up to $2067.15 on August 7th.

It is also important to remember that all central banks around the world hold gold in their reserves. Since not all countries are able to produce gold, some have to purchase the precious metal in international markets. This means they have to lower their holdings of the USD, and this ultimately drives down the value of the US dollar. At the same time, a weakening US dollar means that gold will be cheaper in international markets, and this encourages central banks to purchase more gold.

Gold as a Safe Haven

Another reason why you should invest in a gold IRA is that the asset has been used as a safe haven for centuries. Lots of currencies now have value only because the government mandates citizens and residents to accept the notes in exchange for goods and services. In countries like the USA, the currency is backed by the powerful military and faith in the state of the economy. Lots of people are fine with this situation and trust that the government will do everything it takes to maintain the value of the currency.

However, every now and then, political and economic turmoil threatens the stability of fiat currencies such as the USD. For example, pandemics, wars, and political coups can lead to the total collapse of a country. Throughout history, empires and nations have risen and fallen, and this always results in economic turmoil.

In such situations, the only people who are able to survive and thrive are those who held items that were deemed to be useful. For example, an individual who invested in gold could restart their life in a new and more stable country and economy. While fiat currencies are able to drop in value significantly, gold has historically been able to remain valuable.

Gold save inflation proof safe haven
investing in silver as part of your retirment savings

Investing in Silver

Your retirement savings can also be used to purchase silver. In fact, this metal is commonly used to diversify investments as it has a range of applications. Like gold, silver is used to make expensive jewelry and is used as a store of wealth. However, unlike gold, it has a range of industrial uses. Manufacturers use silver to make batteries, electronic devices, medical devices, and industrial chemicals. The white metal is also used in the automotive industry. The price of silver usually spikes in times of economic and political turmoil, and this is because the precious metal works as a store of value.

Palladium and Platinum

These two precious metals are similar in many ways. They are both used as a store of value and are used to make jewelry. Investors purchase this precious metal as a way of diversifying their portfolios. Aside from these uses, palladium and platinum are used in the automotive industry, and more specifically, they are used in catalytic converters. The prices of these two metals are primarily determined by market forces. However, since they are also used as investments, their prices will also vary depending on the state of the economy and the political situation in the country.

Conclusion

When saving for retirement, it is essential to check the average savings for your particular age group. These statistics can help you gauge your performance. It is worth noting that the average retirement savings will also vary depending on the industry and the salaries. When evaluating your retirement savings, it is essential to also check the recommended amounts.

Retirement savings are meant to be held for the long-term, and this means they can be affected significantly by inflation. Depending on the state of the economy, inflation can erode a huge percentage from your retirement fund.

Because of this, you will find it much wiser to invest in a gold IRA. If you choose to invest in a gold IRA, your retirement fund will be used to purchase gold and other precious metals. The advantage of such investments is that they are able to consistently beat inflation. Precious metals also work as safe havens in case of economic or political turmoil, and during such crises, their prices can go up significantly.

Aside from gold, this fund will invest your savings in precious metals such as silver, platinum, and palladium. These metals have other functions aside from being investments, and this means their prices are a lot more stable.

If you are currently saving for retirement, you should check the recommended savings for your current age and income level. You don’t need to stress yourself as you try to meet your targets, but you should create a practical savings strategy. Take your time to learn the benefits of a gold IRA before you invest your retirement fund.

Frequently Asked Questions About IRA Gold Accounts.

What is the average retirement saving by age between age 20 and 30 ?

The average retirement saving for people between the ages of 20 and 30  is approximately $16,000 although people aged 30 should look to have saved at least $22,000. Inflation will make the money you have saved a great deal less valuable in the future than it is at today's money purchasing levels. See bearlakegold.com home page if you are considering a gold IRA as part of your retirement planning which we would strongly recommend.

What is the average retirement saving by age between age 30 and 40?

The average retirement saving for people between the ages of 30 and 40 is approximately $45,000 although people aged 40 should look to have saved at least $49,000. Inflation will make the money you have saved a great deal less valuable in the future than it is at today's money purchasing levels. See bearlakegold.com home page if you are considering a gold IRA as part of your retirement planning which we would strongly recommend.

What is the average retirement savings by age between 40 and 50?

The average retirement saving for people between the ages of 40 and 50 is approximately $63,000 although people aged 50 sould look to have saved at least $149,000. Inflation will make the money you have saved a great deal less valuable in the future than it is at today's money purchasing levels. See bearlakegold.com home page if you are considering a gold IRA as part of your retirement planning which we would strongly recommend.

What is the average retirement saving by age between 50 and 60?

The average retirement saving for people between the ages of 50 and 60 is approximately $117,000 although people aged 50 should look to have saved at least $221,000. Inflation will make the money you have saved a great deal less valuable in the future than it is at today's money purchasing levels. See bearlakegold.com home page if you are considering a gold IRA as part of your retirement planning which we would strongly recommend.

What is the average retirement savings by age between 60 and 70?

The average retirement saving for people between the ages of 60 and 70 is approximately $172,000 although people aged 50 should look to have saved at least $206,000. Inflation will make the money you have saved a great deal less valuable in the future than it is at today's money purchasing levels. See bearlakegold.com home page if you are considering a gold IRA as part of your retirement planning which we would strongly recommend.

What are the effects of inflation on my retirement funds

The value of your retirement funds will be reduced overtime by inflation. Many economies target 2% per annul inflation rates, yet around the world inflation rates are running higher than the target 2%. 

Lets us assume the US economy   achieves a steady 2% (which is unlikely), You are currently 40 years old and you plan to retire at the age of 60. You have currently saved $100,00 towards your retirement. When you get to the age of 60 in real terms allowing for inflation this will equate to approximately $67,000. The effects of inflation have taken out a sizable chunk of your future spending power.

Investing ion a gold IRA may well help combat some of the effects of inflation as precious metals are relatively inflation proof according to historic evidence. If you would like to see our review of the best gold IRA companies Just click the link.

To find out more information about Gold and Gold IRAs, request an information pack by clicking this link
You should invest in Gold IRA because it is a tax-efficient way to save for your retirement years. A Gold IRA is also an excellent hedge for inflation. Gold and other precious metals have primarily increased in value as inflation rises and the dollar's buying power decreases.
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