How Much Money Do You Need To Retire? Here's What Experts Say

Studies suggest that most Americans would like to retire at age 62, as reported by CNBC.

For years, financial experts have claimed that one should save 10 times their income by retirement age, but it appears as though these old rules no longer apply.

According to Mason Investment Advisory Services COO Christopher Schreiner, "there's not necessarily a one-size-fits all solution" when it comes to retirement.

"Spending will always be the most important variable. The perfect investment solution can’t overcome someone spending beyond their means," Schreiner said.

The four percent rule states that "retirees can withdraw 4 percent of their total portfolio every year to live on, while maintaining an account balance large enough to last for 30 years."

But does this rule still apply? Probably not, according to Matthew Young, president and CEO of Richard C. Young & Co.

"A 35-year time horizon with interest rates at historic lows could make 4 percent more challenging. I tell clients you might want to consider 3 percent, just in case."

"We just don’t know what type of environment we are going to have in the next 15 years in terms of returns," Young added.

President of Check Capital Management Steven Check explained that views on asset allocation have also evolved in recent years, recommending an 80 percent allocation to stocks for people retiring at age 65.

"This is higher than what you’d normally see recommended, but it would have worked fine historically, and I think it is even more necessary with interest rates so low," Check said.

"Projected returns aren’t going to be as good as they were because of stock valuations and bond yields. The models that are based on past returns can’t be projected forward," he noted.

As Forbes reported, a poll released earlier this year found that many realize they won't be able to enjoy their golden years.

Almost half of those aged 60 to 75 said they plan to work part-time once they retire from full-time work, while 18 percent said they think they will work past the age of 70, and another 12 percent said they do not ever plan to stop working full time.

In the same poll, around 30 percent of seniors said that the COVID-19 pandemic had a "negative impact" on their retirement plans.