As fabulous Savvy readers, you probably know by now that retirement is one of my most talked about topics. Maybe you even have dreams about retirement accounts like I do (sad, but true). Exactly how much should you be aiming to save to be golden in your golden years?
It's a highly personal calculation because of a variety of factors, like the cost of living in your area, whether you have any dependents, and your lifestyle and health. Because we can't predict everything in life and have to consider that inflation will take its toll, right now we can only monitor if you're on the right track with your savings plan.
The general rule is that you save 10 percent of your salary to be financially secure in retirement, but that won't necessarily be enough for everybody. The amount you need to save each year primarily depends on three things: your current age, your income, and how much you've already saved. Assume that you'll need about 80 percent of your pre-retirement income for expenses during retirement.
Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.