Saving for retirement can seem hard, especially if you are young and face more immediate demands on your resources. But setting the right retirement savings milestones can help to make your journey to retirement more feasible.
Keep reading to learn the recommended savings amounts at every age and get on the path towards a comfortable retirement.
If your retirement savings is less than it should be, you are not alone. Almost half of all families have little to no money set aside for retirement. In addition, a recent government study found that many individuals have not saved enough to fund a comfortable retirement.
So what financial goals should you hit to successfully prepare for retirement?
Start contributing to your employer's 401k plan or another retirement savings tool, such as an IRA. Most people at this age are just starting in their careers.
The new demands of independent living — rent, health and car insurance, students loans, etc. — are likely of high importance. But now is the time to start saving, even if it's just a little. Be sure to consult a tax or financial advisor before contributing to an IRA.
Experts recommend that your retirement savings should equal your current annual income. With a decade or more of savings and time to create a healthy budget, people in their 30s should have a year's salary tucked away.
Many experts suggest you have three times your annual salary saved for retirement. If you don't, there is still time to catch up. Here are a few common strategies for people in their 40s:
According to the advice of some financial experts, aim to have saved four to five times your salary in retirement savings.
Many individuals are behind in this goal, as the estimated median retirement savings for people in their 50s is $117,000 — less than half of what the average fifty year old will need to retire comfortably.
It is recommended that you have six times your annual salary saved for retirement by the time you reach 60. If you work beyond the typical retirement age of 66, you may be able to surpass that milestone.
Working longer can not only increase your income but also shorten the amount of time you will be relying solely on retirement savings.
If you are falling short of the recommended financial benchmarks, there may still be time to catch up.
Synchrony Bank offers award-winning products that can help you reach the retirement savings milestones to help you save for the future. We have several savings account types that can help you meet your retirement goals at any age.
For help with your retirement savings milestones, call Synchrony Bank at 1-844-345-5789 or click here to set up an account today.
Economic Policy Institute: The State of American Retirement
Investopedia: The Average Retirement Savings by Age for 2016
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