Possible to retire a millionaire starting at 50

Starting to save for retirement at 50 might feel challenging. However, it is still possible to aim for a million-dirham goal. Taking action now is essential. To reach a million-dirham retirement fund, you need to focus on three main factors: time, compounding interest, and consistent savings. Compounding can enhance your savings significantly. Investing wisely and starting right away will help you reach your target. If you aim for a specific annual return on your investments, the amount you need to save changes. For example, at a 4% annual return, you would need to save about Dh92 daily. At 6%, it drops to Dh75, and at 10%, it’s Dh48 a day. Financial planners suggest that you will need about 80% of your pre-retirement income to live comfortably during retirement. Using the 4% withdrawal rule, if you wish to have Dh80,000 a year after retiring, you should save around Dh2 million. To grow your retirement savings, consider how much of your income to save. Saving more will help you reach your goal faster. For instance, a person earning Dh60,000 annually and saving 15% might save about Dh400,000 in 20 years at a 6% return. If that person increases savings to 20%, the fund could grow to Dh530,000. It’s important to start saving now, even if you’re a little late. Save at least 15-20% of your income, cut unnecessary expenses, and invest wisely. Seeking financial advice can also improve your savings strategy. With dedication and smart investing, you can achieve your retirement goal, even starting at 50.