How $300 a month could turn into nearly $1 million for retirement

There's a reason workers are advised to save well for retirement. If you earn an average paycheck, Social Security might replace about 40% of it once you retire — assuming that benefits aren't subject to cuts.

It's common for retirees to need about 70% to 80% of their former income to live comfortably, which is why Social Security often isn't enough. So if you want to avoid financial struggles, you may need to prioritize retirement savings.

That doesn't have to mean parting with half your paycheck, though. In fact, you may be surprised at how far a $300 monthly contribution to an IRA or 401(k) might go.

If you first start saving for retirement in your 40s or 50s, a $300 monthly IRA or 401(k) contribution may not result in the nest egg you're hoping for. But over 40 years, the math may be on your side.

Let's assume you start saving $300 a month for retirement at age 27. That means you're beginning to fund your nest egg early on in your career, but perhaps not the very moment you start collecting a full-time paycheck.

Let's also assume you invest your money heavily in stocks, and that your portfolio…

Original source: https://www.usatoday.com/money/