73% underestimate the retirement savings needed, says DBS

Last Updated on 29, November 2014

A DBS survey of 800 people showed that:

• 73 per cent of the people polled plan to retire between 55 and 65, with an average savings of $571,715.
• At the same time, more than 85 per cent of those polled expect to live on a retirement income of $3,500 per month for the next 15 to 20 years and more.
• But DBS said that there is a big gap between both sets of numbers as the average savings would only last 13 years and not 15 to 20 years.

Source:  Saving Too Little, Too Late For Retirement

My comments:  571715/(3500*12) = 13.6 years which is mathematically correct if the numerator and denominator are in real terms.

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