30 years. I have at least 30 more years before I can retire. Fortunately for me, a traditional retirement is not my plan, and it shouldn't be your plan either.
CNN recently released an article entitled, "Will I ever be able to retire like my Grandma?"
You can click here to read the article.
I will sum it all up for you. In brief, the answer is no. If your plan to retire is to do things exactly like grandma and grandpa did, then you are already WAY behind. It won't work for you and the numbers prove it. This is why a traditional retirement is not my plan.
You have to remember that Grandma has something that most people no longer receive, a pension. In addition, her generation will also be entitled to their other half's pension (or a percentage of it) even after their significant other passes away. Add on social security (which also has a survivor benefit) and a retirement account of some variety. You can see how quickly that adds up to some serious retirement dough. My generation will not receive most of this.
Assuming social security is still solvent when I retire, it will only account for about 1/3 of what retirees receive today. This is also assuming inflation stays under control AND the government increases benefits over time to match inflation. I don't like either of those odds either.
If you are not building a retirement plan that involves passive income, then you are never going to retire like grandma. Building a small portfolio of passive income is money that comes in whether you actively work or not. Dividend paying stocks, rental properties, and book/music royalties are examples of passive income. Be sure to follow me for more articles in the future about passive income and how to create it.