According to the latest Business Owners Outlook from Wilmington Trust, the number of larger business owners who plan to retire sooner than expected shot up by 110% since August 2020, as confidence about the economy has taken a dive since the start of the COVID-19 pandemic. Moreover, the number of smaller business owners planning the same has doubled.
Will those business owners have enough money put away to retire comfortably? Joel Anderson writes for GoBankingRates that a popular way to calculate retirement needs is to use Fidelity Investment's "10x income rule," which mandates putting aside 10 times your annual income in order to maintain a quality of life similar to the one you had while working. But Anderson notes that annual incomes are very different today than they were 10 or 20 years ago — or especially 30 years ago.
Using U.S. Social Security Administration data on average annual wages, GoBankingRates has provided a look at the price tag for retirement from 1951 through 2019. See our slideshow for highlights from that report (along with some carefully chosen cultural markers).
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Richard Binder
Richard Binder, based in New York, is part of the social media team at ALM. He is also a 2014 recipient of the ASPBE Award for Excellence in the Humorous/Fun Department.
