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Retirement: how much should you save every month to have 1 million in retirement?

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With the future implementation of the pension reform, the French are plunged into a Chinese puzzle with the obligation to work two additional years, the increase in the duration of insurance and, of course, the fear of losing resources. Indeed, when leaving professional life, it is not uncommon to see one’s standard of living drop in the face of a loss of money between the salary acquired and obtaining a retirement pension. To overcome this complicated situation, future retirees are increasingly considering savings solutions. For example, to have a million euros aside in retirement, how much should you save every month?

It has become one of the reflexes of the French to create a feeling of security: the question of savings has become one of the major issues for considering retirement with more serenity. Thus, future retirees are worried about inflation and a general decline in the standard of living when the salary of a career gives way to a retirement pension. In order to remedy this situation, it is therefore towards savings that they turn, but it is still necessary to obtain the best advice and to set aside a sufficient sum to guarantee real stability.

If retirees today have, as their main objective, to set aside a substantial sum of money, this generally amounts to around one million euros. However, it is essential to be able to set up an effective savings system as soon as possible to reach this amount with adequate investment methods. To get closer, it is therefore advisable to calculate the age at which the saver wishes to retire, as well as the amount that it is possible for him to save each month.

To get started, it is better to favor a fair balance with the implementation of so-called “limited risk” investments. It is then possible to achieve a 6% return by diversifying the savings portfolio with, for example, 7.76% net annual return for 34 years on the CAC40. Do not forget that, to obtain this result, savings started as early as possible are essential.

In fact, if you are 40 years from retirement, you must save 522 euros per month to hope to reach one million at retirement with a rate of return of 6%. It is therefore essential to start saving at age 25 in order to leave at age 65. However, it remains difficult to set aside so much money per month with often low salaries at the start of your career: in this case, favor a rate of 10% to save it and save 179 euros per month.

It is necessary to remember that the higher the investment rate, the greater the risks. Therefore, when you reach 30 years of retirement, it is possible here to save 1021 euros per month with a return of 6% or 481 euros per month with a rate of 10%. Indeed, the more time passes, the more the sums to be saved become important.

At 20 years from retirement, 2195 euros and a rate of 6% will be needed. A figure that will reach 1382 euros for 10%. At 10 years from retirement, 6125 euros will have to be set aside each month to reach one million with a rate of 6%.

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