BREAKING: Andrew Luck retiring from football

Is a retirement crisis looming? CBS4 asks the experts how to retire a millionaire

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

INDIANAPOLIS, Ind. – Financial experts are warning a new crisis is looming and it could hit Hoosiers during retirement.

Studies have shown a majority of Americans aren’t saving enough for retirement and that could have widespread, long-lasting implications.

So CBS4 enlisted the help of Andy Mattingly, Forum Credit Union’s COO, to lay out exactly what Hoosiers need to retire a millionaire.

“It’s never too late,” he said. “It’s just much more difficult.”

And retiring a millionaire may not be what it seems:

  • No luxury homes.
  • No expensive boats.
  • No expensive vacations.

Mattingly said for most Hoosiers to survive retirement, they’ll need at least a million dollars.

The end goal in this scenario is retiring at 65, bringing in about $4,500 a month, $1,500 of that coming from Social Security.

The easiest way to reach this goal, Mattingly said, is to start in your 20s.

Save $1,000 every month, put it into a 401K for example, and that will ensure you won’t ever have to increase your monthly savings.

“That is a lot,” he acknowledged. “And I think the thing is where people need to look, if I start with at least half of that number, I’m going to do at least $500 a month.”

The longer you hold off, Mattingly said, the more you’ll have to save.

If you enter your 30s with no savings, your monthly contributions jump to $1,600 a month.

“You can see you’re paying a little penalty by waiting,” Mattingly said. “But not a lot.”

The real problem, he said, comes in waiting until your 40s to start saving.

That must-save amount now jumps to $3,000 a month if you’ve ignored retirement that long. And from there it balloons dramatically.

“It’s not dire,” he said. “It’s just going to ratchet up. It’s just going to be a lot more.”

A 2016 study by Wallethub found Indiana ranks 37th nationwide for financial literacy, 49th for residents with a rainy day fund.

Because of that, Congress has even taken note.

“I think that folks have it top of mind that they need to save for retirement,” Rep. Luke Messer (R-Ind.) said. “But sometimes there may be more worry than action when it comes to our savings.”

Messer has formed an unusual bond with Sen. Elizabeth Warren (D-Mass.).

Their idea is to create an online ‘lost and found’ hub for all retirement accounts, which would make it easier for people to track their retirement when they change jobs.

“If we could get these accounts online and make sure folks had a place they could go to find them, there’s reason to believe it would make a difference,” Messer said. “Millions of dollars for thousands and thousands of people.”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.