Calculating how much to save for retirement can feel overwhelming. There's no one-size-fits-all plan, but a few simple retirement planning tips can help you determine if you're on the right path.
Read on to learn how to get started saving for retirement today.
With so many variables shaping your financial needs in retirement, there's no simple answer to the question, "How much should I save for retirement?".
You can develop a better understanding of your own retirement outlook by answering the following:
While individual needs may differ based on these considerations, many experts suggest following a retirement budget of 65-75% of your working income.
Some guidelines suggest that you should have saved 9 to 11 times your current annual salary by the time you retire. This calculation means that if you make $50,000 a year now, you'll need to save $450,000-$550,000 by the time you retire.
How do you get there?
Many financial advisors recommend saving a minimum of 10% of your annual gross income a year specifically for retirement. You can break down your specific savings needs with a free online retirement calculator.
If setting aside 10% of your monthly income sounds like a lot, remember that some retirement savings plans use use pre-tax dollars. This could lower your taxable income — helping to offset at least some changes to your budget as a result of your retirement planning.
Retirement savings plans, such as your employer's 401(k) or an Individual Retirement Account (IRA), can help you maximize your contributions into a nest egg for the future. Consult a financial or tax advisor before contributing to an IRA.
Call Synchrony Bank at 1-844-345-5789 or click here to open an account and start saving for retirement today.
Average Retirement Savings Guide: http://www.averageretirementsavingsguide.com/#need
Smart Asset: https://smartasset.com/retirement/average-retirement-savings-are-you-normal
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