Just like the cost of living, the cost of retirement changes all around the world. Depending on factors like salary, taxes, government assistance, the housing market, and everyday spending, the money you’ll need to retire can vary from country to country. For some, this can work to their benefit. For others, it may cost more time and money to finally settle down and enjoy their reinvention years. Whether you want to spend your golden years abroad or in your home country, here’s what retirement nest eggs around the world will run you on average.
- United Kingdom. Also known as Great Britain, the United Kingdom includes four countries and provinces: Wales, Northern Ireland, England, and Scotland. Across the pond, Great Britain features one of the most affordable retirement nest eggs around the world. In the U.K., it is suggested that retirees save seven times their yearly salaries for a suitable nest egg. By age 30, residents must save a complete year’s salary in order to stay on track for this retirement goal.
- Japan. Like the United Kingdom, Japan also boasts similarly low retirement savings requirements, considering that this country is home to a rising elderly population with approximately 28 percent of its people being 65 or older. Lucky for them, it is also recommended that they save only seven times their average yearly salary in order to enjoy their golden years in peace. As for those still in the process of padding their nest eggs, they ought to aim to save a year’s salary no later than age 30.
- United States of America. America—the land of the free and the home of the brave.Sadly, retirement, however, is not free. Americans, on average, will need to have 10 times their salaries saved in order to properly retire. As for those still saving, aim to stock away a year’s salary prior to turning 30.Are you sensing a pattern here? Though it’s not the rule for every country, it appears that many places share that common retirement goal, which can be helpful if you’re still deciding whether or not to live abroad during your reinvention years.
- Canada. Oh Canada! Known for its hospitality and natural beauty, this country is appreciated all around the world. Though Canada may enjoy a positive reputation, residents—and aspiring retirees—have to save up a bit more to retire there. Requiring an average of 11 times a person’s salary for a comfortable retirement in Canada, it’s on the higher end compared to other countries. As for milestones, by age 30, ensure that you save a full year’s salary.
- Hong Kong. Though one in seven Hong Kong residents enjoy millionaire status, it turns out that they need to save even more to retire comfortably. How much? Approximately 12 times their salaries! It also diverges from the pack in a big way. Unlike in the previously-listed countries, Hong Kong residents should strive to save twice their yearly salaries by the time they reach age 30.
No matter where you live, saving up for your golden years is important. After all, with so much time spent contributing to the work force, you’re putting in the time and effort to earn a proper retirement fund. Though the average costs may change depending on a host of factors, these retirement nest eggs around the world can give you different options about where you will spend a new, exciting period of your life.
Inspired to increase your savings? The investors at Ty J. Young know how to help you grow your retirement fund—money-protected. To find out further information, give us a call at 877-912-1919. If you also want to find out facts about the retirement process, read our blog here.