Check out the Appendix for charts on how much % of income to save for retirement at age xx given your earnings power, starting age and real return.
http://crr.bc.edu/images/stories/Briefs/IB_11-13.pdf
How Much to Save for a Secure Retirement
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MachineGhost
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How Much to Save for a Secure Retirement
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: How Much to Save for a Secure Retirement
Thanks for sharing that. There is some very good information in there.
"I came here for financial advice, but I've ended up with a bunch of shave soaps and apparently am about to start eating sardines. Not that I'm complaining, of course." -ZedThou
Re: How Much to Save for a Secure Retirement
It's a decent article for the average person but probably wouldn't apply to us here on PP Forums. Most of us probably save 10x to 20x that of the average person. That sounds high but consider the average 50 year old in the US has about $50k in their retirement accounts.
I had $50k in retirement accounts by the time I was 23. If I wanted to keep working until I'm 50, instead of retiring much earlier, I'd have $2M+ in retirement accounts and I suspect most others on PP Forums are in similar positions, depending on what age you were when you learned about finance.
If you save substantially more money than the average person, then you'll need significantly less than 80% of pre-retirement earnings. I save at least 50% of my earnings for retirement, therefore I'd need no more than 50% of my pre-retirement income (not counting the savings from clothing, transportation and FICA taxes as mentioned in the article).
I had $50k in retirement accounts by the time I was 23. If I wanted to keep working until I'm 50, instead of retiring much earlier, I'd have $2M+ in retirement accounts and I suspect most others on PP Forums are in similar positions, depending on what age you were when you learned about finance.
If you save substantially more money than the average person, then you'll need significantly less than 80% of pre-retirement earnings. I save at least 50% of my earnings for retirement, therefore I'd need no more than 50% of my pre-retirement income (not counting the savings from clothing, transportation and FICA taxes as mentioned in the article).