If you’re getting close to retirement — or even if you’re 20 years away — you probably give it some thought at least on occasion. Maybe you wonder if you’re saving enough for your post-career life. Perhaps you just want to make sure you’ll have a supplement to social security. Whatever your financial goals, it’s important to ensure you’re saving enough money for your future. With a little planning, you can get there. Let’s find out how.
Saving By Age
According to T. Rowe Price, as a general rule of thumb, you should have saved about 1/2 your yearly salary by the time you turn 30. By the time you’re 50, you should have saved 6 times your annual pay. But if you’re not even close to these numbers, don’t freak out and don’t give up. Even if what you have doesn’t jive with these recommendations, more is always better than less — so start now and get the help of a financial advisor who can help you formulate a plan to catch up as much as possible.
How Long Will My Money Last?
It varies by state, but T. Rowe Price offers estimates of how long $1 Million, for example, will last in each state.
Use a Calculator
Not ready to meet with a financial pro just yet? There are several different online calculators that will help you determine if what you’re saving will be enough for your retirement.
Do Your Best
The savings goals recommended to you online or by experts are useful, but they aren’t hard and fast rules. These are YOUR savings, and can be adjusted according to your goals and circumstances. There is no magic bullet. T. Rowe Price recommends putting away about 15 percent of your salary, including employer match. But if that’s not doable for you, start with 6% and increase the percentage by 1% every year until you get to a level you’re comfortable with. If you can give up expenses, such as car payments and gym memberships, to help you get there, consider what you’re willing to do.