How much should you have saved for retirement? in your 20’s, in your 30’s, in your 40’s, etc? Knowing how much to save and getting there are two very different things. We suggest that you work with an expert adviser. He will start with your age and your current income level to calculate how much you need to save. He will use a combination of employer contributions, savings, interest income on your savings and pensions that you may or may not be eligible for. While this can be very complex, it can also be simplified as well by making a list of the income you will have at 65, then decide how much in addition you will need to live in the manner you feel is comfortable for you and your family.
Saving for Retirement
Assume you are making $40k a year and are in your 20’s. Experts feel that you should have at least $4k saved. By the time you are in your 30’s, the amount should have increased to $82k assuming a combination of interest income and contributions. In your 40’s you should have at least $240k and in your 50’s you should have over $500k saved. By the time you retire at 65, a consumer should have saved at least $900k in funds available to them to generate the cash flow they will need. If you have a pension income, then these numbers become extra dollars to help enjoy your life during retirement.
The above calculations are merely a guideline or a place to start. If you make substantially more income, you probably want to save more money than was mentioned just to maintain the life style you are comfortable with. Pensions are extra and we urge consumers to obtain expert advice regarding savings levels and your retirement income.
Start when you are younger to begin saving for retirement. It is much easier to meet your retirement objectives when you start young than it is when you start saving later in life.