How to Save for Retirement

Saving for retirement has become an increasingly important task in the urbanized world. There is no real quick-and-easy answer to this question, but the golden rule is at least 8 times your final salary. This will help ensure that you don’t run out of funds during your approximate 25 years in retirement.
It is better to start saving earlier, rather than later. The recommended age to begin saving for retirement is 25. The earlier you start, the more money you have. The more money you have, the earlier you can retire or the more lavish you can make your time in retirement.

Increasing your 401(k) contributions is the simplest way to help boost your retirement savings. Try upping your deferral rate to as much as 15 percent. This will cause minimal difference in contribution, but will make a big difference in savings in the long run.

An important factor to keep in mind when gauging retirement savings is determining what your future retirement lifestyle will be. For example, will you be traveling extensively? Will you have children to take care of? Will you have excessive health care costs to manage? You will want your savings to reflect your preferred lifestyle so that you can take care of everything you need to in retirement without having to return to work.

So, as a final answer, there is no specific number that can be determined to fund a successful retirement, for that number is different for every person and family. Speaking with a financial services advisor is a great way to get the ball rolling and to get some professional advice as pertains to your own unique circumstances.

Source: Democrat and Chronicle

Contact Us

Image courtesy of 401(K) 2013

Copyright © 2017