Is it really necessary to spend 40 or 50 years of your life working? It’s a question that many have started asking themselves. Learn more about how you can retire by 2030, whether you’re 30, 40, 50 or 60. Make decisions now. You need at least 70% to 80% of your preretirement income after you retire. Starting from $0 right this minute? You’re not alone. The Employee Benefits Research Institute reports that 37% of all employees age 35 to 44 and 34% of employees age 45 to 54 have less than $1,000 saved for retirement. Keep reading to discover how you can still manage to retire at any age. Share your plans with Facet Wealth, a virtual full-service financial planning service with dedicated certified financial planners. What Does it Take to Retire? Good question. You’ll hear experts throw out “common rules of thumb” all over the internet. Have you already heard that you’ll need 70% to 80% of your pre-retirement income after you retire? Sure, if you’ve Googled the topic at any point, you probably have. Let’s say you made $100,000 prior to retirement. That means you need to count on between $70,000 to $80,000 per year in retirement. But is that the be-all, end-all? Not necessarily. Check out your needs below. Need 1: A savings mindset. Do you tend to gravitate toward saving a portion of your paycheck? Do you sock money away consistently? If so, that’s the first step to having the right money mindset for retiring by 2030. Need 2: More than that: An investment mindset. Where do you “keep” your retirement savings? In a savings account? (Hopefully not, due to lack of building interest.) Your long-term retirement savings may lie in your 401(k), IRA or another retirement account. Tax-advantaged employer 401(k) accounts allow you to team up with your employer, who may match up to a certain percentage of funds invested. What does it require? Heavy investment, regular revisits and rebalancing to meet your retirement timeline. Need 3: A gigantic commitment. Let’s say you’re 30 and shooting for a retirement-ready nest egg by 2030. In other words, you’ll retire by 39 — or to make a clean break of it, 40. You need to have a huge income to make this work. F.I.R.E. proponents commonly say that your income must total in the six-figure range to accumulate enough to retire by 40. Don’t forget that you’ll battle that nasty word “inflation” over time and you’ll also give up years of earned income. Need 4: A goal to keep those expenses low. You also may not want to buy a $500,000 home and expect “Financial Independence, Retire Early” (FIRE) to work for you. Get on a slim budget and don’t spend unnecessarily — yes, that could include regular vacations! When you don’t spend a lot to live on a daily basis, you can make serious savings progress toward your goals. How to Retire by 2030 if You’re 30 What’s FIRE, mentioned earlier? It means saving and investing very aggressively, such as 50% to 75% of your income to retire in your 30s or 40s. What goes into knowing how much you need to save? Two things: Anticipated annual retirement expenses and the percentage of your portfolio that goes into creating those expenses. Two common FIRE techniques: LeanFIRE: You keep retirement expenses low so you can retire with less in savings. FatFIRE: Saving up to go for a cushier retirement lifestyle. According to several studies, retirees can withdraw up to 4% (adjusted for inflation) each year in retirement without depleting their portfolio over a 30-year period. But if you retire at 30, your retirement ends up being much longer, so some early retirees tackle a 3% withdrawal rate. Calculate how much you need to retire, anticipated annual expenses and divide it by your target withdrawal rate. Let’s say you want to spend $60,000 per year in retirement and want to withdraw 2 percent, you’d need $60,000 divided by 0.02, or $3 million to retire. How to Retire by 2030 if You’re 40 Guess what. At 40, you’re 20 years away from traditional retirement age and 20 years removed from high school graduation. Isn’t that remarkable? Don’t freak out if you haven’t saved a penny for retirement yet. You can still build a $1 million retirement nest egg. Here’s how it can work. Just for fun, let’s say you’ll retire at 65 just like “everyone else” and you earn $50,000 per year. In order to retire with $1 million in 25 years, at 40 years old, you’d need to save $800 a month — a little less than 20% of your income. So, how does that translate to retirement in 10 years? You’re going to need to implement FIRE techniques and save even more. Again, figure out what you’re comfortable with living off of and go from there. How to Retire by 2030 if You’re 50 You can retire in 10 years if you’re 50 — and haven’t saved a dime. However, you’d better get going. Think of it this way: You can focus on retirement more intently when you’re 50 because you’re still making money through your job, the kids might be out of the house, your house might be paid off. You still have enough time — 10 years! — to reach a decent retirement position. That still might mean you need to make sacrifices to get there. A few things to think about: How much additional income can you make? Can you get a part-time job or channel your inner Millennial and get a side hustle? What will your Social Security benefits total? Check out the retirement benefit estimator to help determine what kind of monthly income you can expect in retirement. Check into your pension plan (not many jobs offer pension plans anymore, however). How can you budget food, dining out and leisure activities? So, how much will you have to save to reach $1 million? If you assume a 10% return rate, you would have to save $4,964 per month to reach $1 million dollars. Sound impossible? Hold up. Remember, you don’t have three teenagers drinking six gallons of milk in your house anymore or demanding money to go to the movies. And hopefully, you’ve done away with that pesky mortgage. Consider that budget and save, save, save! Don’t forget that you can make catch-up provisions to your retirement accounts at age 50 or older: Type of Account Annual Contribution Limit Catch-Up Contribution Total 401(k) or 403(b) $19,500 $6,500 $26,000 Individual retirement account (IRA, Traditional and Roth) $6,000 $1,000 $7,000 SIMPLE 401(k) and SIMPLE IRA $13,500 $3,000 $16,500 How to Retire by 2030 if You’re 60 Refer to the table above if you want to make catch-up contributions to your retirement funds. At 60, you need to consider when you want to take Social Security retirement benefits. You can’t withdraw from Social Security before age 62. You’ll get more in benefits the longer you wait, which can increase your guaranteed income for later in life. If you haven’t saved a dime and you’re jonesing to retire, get in touch with Facet Wealth. Facet Wealth professionals can direct you toward how to make your dreams a reality. Facet Wealth can help you get there. The tools it builds and the services that it provides tangibly improve people’s lives. Set Your Goals and Get Going Bound and determined to retire in 10 years? Actually, now that it’s 2021 — less than 10 years? You need a game plan. Facet Wealth will help you get there. You’ll sip a pina colada by the side of the pool in no time. See more from BenzingaClick here for options trades from BenzingaTop 20 FinTech Influencers Under 407 Important Steps for Starting a New Business© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.