Many of us aspire to get to a place where we don’t have to worry about money, and getting to that place is the main reason many Americans strive to earn more and save more. According to a recent Edelman Financial Engines report, 4 in 5 Americans said that “being financially secure enough to not worry about money” is the main driver for having a goal to build wealth. But how much it takes to reach this level of feeling worry-free varies greatly by age — and it’s not typically the same amount that Americans view as needed to be wealthy.
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“Our survey found that there is a gap between the amount of money Americans reported needing to feel wealthy and the amount required to never worry about wealth,” said Andy Smith, director of financial planning at Edelman Financial Engines.
“On average, Americans believe it takes approximately an additional $284,000 above feeling wealthy to really be ‘worry-free.’ This ‘wealth delta’ depends greatly on where you are in life, with the difference being highest for those in their 30s and 40s — peaking at nearly $1 million. Of note, this difference flip-flops for respondents in their 60s and beyond, as these Americans believe feeling wealthy requires more assets than not worrying about money.”
Here’s a look at how much each generation says they need to be “worry-free” when it comes to their finances.
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Older Americans Require the Least To Be Worry-Free, While Gen X Requires the Most
The report found that Americans ages 70 and older would be worry-free with $1.48 million — the least of any generation.
“Americans in the 70+ age range may say they need the least money to live worry-free since they’ve entered their golden years and likely have lower financial responsibilities,” Smith said. “The bulk of their retirement savings was likely completed in their younger peak earning years. Their adult children are likely financially independent, so there are fewer expenses that require additional planning and saving. Additionally, older Americans can take advantage of social welfare programs, like Social Security and Medicare, to alleviate some of the financial strain of healthcare and daily living expenses.”
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Americans ages 50 to 59 said they would need the most to be worry-free — $2.96 million.
“While it’s impossible to pinpoint one exact reason why this demographic reported needing the most money to feel worry-free, there certainly may be an impact stemming from retirement needs and wants, rising medical costs, changes in family dynamics and the cost of living,” Smith said. “This demographic may also be bearing the cost of their children’s education or be among the 47% of Americans who financially support their adult children, leading to an impact on their own savings and planning.”
The other generations fell in the middle — Americans ages 30 to 39 (millennials) said they would need $1.96 million, Americans ages 40 to 49 said they would need $2.69 million and Americans ages 60 to 69 said they would need $2.68 million.
How Much Do You Really Need To Be Worry-Free?
There is no one-size-fits-all amount that can make all Americans feel worry-free, as this varies greatly depending on lifestyle, where you live and other factors. It also depends on how you define “worry-free.”
“The term ‘worry-free’ means different things to each American,” Smith said. “Some may feel they are worry-free when they can reasonably afford their children’s college education. Others may see it as having a comfortable emergency fund to care for themselves and their family, should economic headwinds refuse to alleviate.”
When calculating your own “worry-free” amount, there are a few basic things you should take into account.
“Generally, living worry-free may include not having to worry about monthly bills, having a comfortable emergency fund and a sustainable retirement fund, and the ability to maintain your preferred lifestyle without significant financial sacrifices,” Smith said.
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This article originally appeared on GOBankingRates.com: How Much Money Do You Need To Be ‘Worry-Free’? One Generation Says $3 Million
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