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How Much Should You Save For Retirement?

Savvy Solution: How Much Should You Save For Retirement?

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.

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madhvi madhvi 7 years
I recently found a great article on finra.org that helps you calculate how much you'll need for retirement. Here's the link: http://www.finrafoundation.org/Investing%20for%20Retirement%20module.pdf I hope it's okay to post a link here.
mandy_frost mandy_frost 7 years
I'm probably not putting enough back. It's tough with student loan payments hanging over my head (and more to come if I follow through on my plan for law school). Wouldn't the number one factor be how long you live though? That seems to be an obvious one that was left out.
psterling psterling 7 years
My fiance puts as much money as he can into our retirement fund. Its funny, we're not exactly struggling to make ends meet but the way he's socking it away is like he's planning on retiring at 40!
shanimalcracker shanimalcracker 7 years
Ever since I could contribute to a Roth in college, I have maxed it out. I'm also maxing out my 401(k). I, personally, didn't think I needed to be so scrupulous about saving for retirement, but realize the benefits now.
Merlin713 Merlin713 7 years
Well, I can't really say right now because I'm not that far in life. I'm still in college, so I will be acting on my plans on this in about two or so years. As for my parents, they will retire very wealthy people. They have investments as well as setting aside portions from their checks in a separate fund in the bank. I don't know how much my Mom sets aside, but I know my Dad sets aside 33-40% of his salary. My Dad will retire in 6 years(he's 54) and I don't know about my Mom. She just turned 50 last year. She might have 10 more years. It depends.
kgtg1 kgtg1 7 years
I started my Roth IRA right after graduation, about a year ago, at 22. I initially put in a couple thousand, and now I put in about 5% of my salary. I guess I need to step it up!
briannescott briannescott 7 years
my husband and i have a discussion about once every couple of weeks about how much we're putting toward retirement (we both contribute 6% of our salaries to our IRAs at work in addition to almost maxing out our personal ROTHs)...I always feel like we're putting too much and he's always thinking it's not enough :)
ur_momm ur_momm 7 years
I started my RRSP contributions a year and half ago (age 22) and I put somewhere around 15% of my salary. I think i'm doing pretty well. but would obviously be doing better if my salary was in the triple digits :)
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