Are you on the path to hit your retirement savings benchmarks? If you are like many Americans, the answer is "no." That's why financial planners have developed retirement savings strategies for people at every age.
Keep reading to learn some suggested benchmarks to guide you towards your savings goals.
Many Americans wonder about creating the right retirement savings benchmarks to ensure they have a secure future. With only 28% of all workers feeling confident about their financial prospects in retirement, it's clear that people are frustrated in their attempts to save for retirement.
If you don't feel financially prepared for retirement, you are not alone. In fact, more than 25% of workers report having saved less than $1,000 for retirement. It can be challenging to make saving for retirement a priority. However, understanding appropriate goals for retirement planning is the first step to achieving them.
You are just beginning to build your nest egg but you likely have more immediate priorities that keep you from saving aggressively. Settling into a new job can take time and most college graduates are beginning to pay off an average of $30,000 in student loans.
The important goal in your 20's is to start saving. Consider contributing as much as you can afford to your employer's 401(k). Opening a savings product such as a Roth or Traditional IRA is another solid strategy to getting ahead.
If you expect to retire around 65 and hope to maintain or improve your current standard of living once you retire, many experts suggest that you should have saved the equivalent of what you are earning now.
By now, it is suggested that your retirement savings should be growing and keeping pace with your salary increases. Conservative benchmarks for retirement savings recommend having three times your annual salary in retirement savings in your 40's.
At age 50, retirement may be as few as 15 years away. Experts suggest that your nest egg should have grown to four to five times your annual income.
You now should have a sizable amount of money in retirement savings if you have saved conscientiously and made wise financial decisions in earlier years. A common benchmark for this last decade of your working life is six times your final salary.
Whether you are just beginning to save for retirement or feel like you need to catch up, opening an account with Synchrony Bank can help. We have several savings tools that can help you meet your benchmarks at any age.
Call 1-844-345-5789 or find Synchrony Bank online to learn more about award-winning deposit products to help you save for retirement.
Employee Benefit Research Institute and Greenwald & Associates: 2016 Retirement Confidence Survey
The Institute for College Access and Success: Project on Student Debt
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