It can be hard to know if you’re saving enough to ensure a comfortable retirement. An analysis by the federal government found that average Americans approaching retirement age have saved around $104,000.
However, understanding what that amount means for you may be difficult because some individuals have saved much more and others have no retirement savings at all.
With pensions and Social Security providing less financial security than in the past — and so much about the future of the economy being uncertain — the pressure is on for working Americans to save as much as they can for retirement.
In order to estimate what you need to put away for retirement, ask yourself the following questions:
Some experts suggest planning to live on a minimum of 65-75% of your current income in retirement. According to these parameters, you may need 9 to 11 times your current annual salary saved by the time you retire.
Keep in mind that unpredictable economic factors, medical care and how long you live will also impact your retirement expenses. Therefore, it is advisable to exceed the average retirement savings by age 55.
Many financial advisors recommend saving a minimum of 10% of your annual gross income toward retirement. These savings are in addition to money that you may be setting aside for short-term goals, such as a new car, or emergencies like medical bills.
For many people, the average retirement savings amount by age 55 is not going to be enough. Online retirement calculators can help you determine if you’re on track.
Taking advantage of your employer’s retirement plan, such as a 401(k) or savings products such as an Individual Retirement Account (IRA), can transform a small-but-regular contribution into a nest-egg for your future.
Many retirement savings vehicles also reduce your taxable income, meaning you keep more of what you earn. Be sure to consult your tax or financial advisor before contributing to an IRA.
Synchrony Bank offers a range of financial products, including IRAs, that feature competitive rates+, award-winning customer service, easy online access and the security of the Bankrate.com 5-Star Safe & Sound® Rating1.
If you want to save more for retirement, Synchrony Bank can help. Call 1-844-345-5789 to learn how you can start saving for retirement today.
Smart Asset: https://smartasset.com/retirement/average-retirement-savings-are-you-normal
CNN Money: http://money.cnn.com/calculator/retirement/retirement-need/
+National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.
1Synchrony Bank achieved a five-star rating for 1st Quarter 2014 through 4th Quarter 2015.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 07/10/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.