How much should you have saved for retirement? In your 20s, in your 30s, or your 40s, 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 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 deciding 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 20s. Experts feel that you should have at least $4k saved. By the time you are in your 30s, the amount should have increased to $82k, assuming a combination of interest income and contributions. In your 40s, you should have at least $240k; in your 50s, you should have over $500k saved. By the time you retire at 65, a consumer should have saved at least $900k in funds to generate the cash flow they will need. If you have a pension income, then these numbers become extra dollars to help you 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 to maintain your comfortable lifestyle. Pensions are extra, and we urge consumers to obtain expert advice regarding savings levels and retirement income.
Empower yourself by starting to save for retirement at a younger age. The earlier you start, the more control you have over meeting your retirement objectives. It’s a proactive step towards securing your financial future.