Many Americans are not saving enough for retirement. If you're already thinking about your retirement strategy, you're ahead of the game. Figuring out how much to save for retirement every month is the first step towards managing your long-term goals.
Read on for some useful tips on saving money and learn how to secure your future.
Before you learn how much money to save each month, first you must determine how much funding you will need in retirement as a whole.
Not everyone's income, expenses and goals are the same, so there's no one-size-fits-all answer to this question. Many experts suggest that retirees plan to live on 65-75% of their working income.
Based on those guidelines, you may need to save 9 to 11 times your current annual salary by the time you retire.
Get a better picture of your needs by answering these questions:
Also remember that other unpredictable factors such as economic downturns and increasing health care costs may also affect your future financial outlook.
The best way to reach your goal is to get started now. Assessing your monthly budget and creating a source of income for retirement are the first steps in planning for a prosperous retirement.
Many financial advisors recommend saving at least 10% of your annual gross income for retirement. As an example, someone bringing home $45,000 a year should put at least $375 a month into retirement savings.
Keep in mind that's over and above any savings for short-term goals, such as a new car or a down payment on a house or an emergency fund.
If you're ready to crunch some numbers, free online retirement calculators can help you get started.
Now that you know how much to save for retirement each month, how can you maximize your funds?
At Synchrony Bank, we offer a variety of savings products that can help you secure a comfortable retirement. We have several savings account types that can help you meet your retirement goals, including IRAs. Our accounts are FDIC-insured up to $250,000 per depositor, per insured bank, for each ownership category. You should consult your financial or tax advisor before contributing to an IRA.
Call Synchrony Bank today at 1-844-345-5789 to learn about your retirement savings plan options or contact us online.
Average Retirement Savings Guide: http://www.averageretirementsavingsguide.com/#need
Smart Asset: https://smartasset.com/retirement/average-retirement-savings-are-you-normal
CNN Money: http://money.cnn.com/calculator/retirement/retirement-need/
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