Retirement is something that will happen to all of us if
we’re lucky. Unfortunately, though, it’s also something that most of us tend to
put off thinking about. While retirement might seem far away, it will be here
sooner than you think, so the key is to start preparing right now, but how much
should you be saving?
The answer to that question really depends on what your
retirement dreams and goals are. Someone who just wants to live comfortably in
his home, for example, is going to have very different retirement needs than
someone who wants to travel the world. Thus, the first step is to think about
what you plan to do in retirement and how much it will cost; knowing this
information will help you to save and plan realistically.
Based on an estimate- remember, it’s always best to estimate
high- of your retirement expenses, you should determine approximately how much
you need to save per year to meet your goal. In general, though, the rule is to
try and save at least 15% of your pretax income, more if you have big plans for
your life in retirement.
Try, if you can, to maintain a 401(k) or other workplace
retirement accountant where your employer will match your contributions. This
is one of the easiest and fastest ways to get to that 15% mark (and beyond!).
Also, keep in mind that the sooner you start saving, the better,
and the easier it will be to hit that 15% goal. More time gives you more time
to save, more time for investments to grow, and just more time to
think and plan for what you want to do in the future and how you want to live.
Bear in mind, too, that the longer you work, the better in
terms of the amount your savings can and will grow. If you can keep these
simple tips in mind and perhaps hire a financial advisor to give you advice and
assistance along the way, you should enjoy a wonderful, fulfilling, and above
all else, secure retirement.
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