2014
There is probably no more confusing subject to many people than planning for retirement which is why many people ignore it or do a poor job. After all, if I told you that to have any chance of a financially secure retirement you need to save 15% of your current income you would think me crazy. “Experts” abound and the message is often confusing. What percentage of my income do I need to save, how much do I actually need in the bank when I retire, what income replacement percentage should I target? The answer is easy … it depends‼️
On what❓ Well, simple stuff like, how old you are now, when you plan to retire, your current income, your tolerance for investment risk, what inflation will be over the next forty years, how much you have saved already, do you need to provide survivor benefits and oh yes, one other minor thing … how long you plan to live once you retire. Like I said, it depends‼️
Here is an article that may shed more light on the subject.
Though everyone’s situation is different, recent research shows that, on average, most Americans should double their current savings rates if they want to avoid outliving their money in retirement.
That’s part of the message from the folks who organize America Saves Week — an annual opportunity for retirement savers, financial advisers and even the Social Security Administration to encourage people to assess their savings strategies. It’s not quite the Olympics, but it’s an event nonetheless. Give yourself a gold medal if you’ve amassed anything close to 10 times your final salary. If you haven’t — like most of us — get your trainers on and find new ways to save.
Now not all Americans need to take stock of their saving strategies or look for new ways to save. According to America Saves Week, one-third (35%) of those Americans responding to a survey said they were making “good” or “excellent” progress in meeting their savings needs. “Only about one-third of Americans are living within their means and think they are prepared for the long term financial future,” said Stephen Brobeck, the executive director of the Consumer Federation of America and a founder of America Saves, in a news conference this week.
But the glass isn’t really half full; it’s just one-third full. Nearly two-thirds (63%) responding to the survey said they were making only “fair” or “no” progress in meeting their savings needs.
via Want to retire? Double your savings rate – Robert Powell’s Retirement Portfolio – MarketWatch.
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