Investors Expect Long-Term Returns of 15.3%. Here's the Reality All Retirees Need to Keep in Mind
How much must one save monthly to reach $1 million in 30 years?
To save $1 million in 30 years, one must save approximately $856 per month, assuming a 7% average annual return2. This calculation is based on realistic expectations and aims to provide a comfortable retirement. However, individual circumstances may vary, and it's essential to adjust savings accordingly.
What is the expected average annual return for Gen X workers?
Gen X workers expect an average annual return of 15.3% on their investments, according to a Natixis survey. However, financial experts suggest a more realistic expectation would be closer to 7% to account for inflation and market fluctuations. It is important for investors to align their retirement plans with a more conservative rate of return to avoid falling short in their golden years.
What is the realistic average annual return according to Natixis?
The realistic average annual return according to Natixis is 7%. This is based on a survey that reveals a significant gap between American Gen X workers' expectations of earning 15.3% returns above inflation over the long term and the actual average annual returns, which are closer to 7%.