How much money do you really need to save for retirement? Most experts say that 70% of your pre-retirement income will be enough to live comfortably once you retire. Consider these four tips:
Save, save, save
Make saving money a financial priority and habit. If your employer offers a 401(k) match, plan your budget around ensuring you receive that free money! If you are young, plan to save roughly 10% of your income for retirement, and increase that amount to 20% or more after you reach your 40s.
Make smart financial choices
Try to pay off all your debt by the time you retire so that you can use all of the income you receive afterwards. Consider shifting money away from high-risk/high-reward investments around 10 years before you retire so you can ensure your savings will be there, regardless of the stock market.
Setting retirement goals
By using one of the online retirement calculators mentioned in the Learn More box, you can estimate how much money you will need by the time you retire. Once you have that number in mind, work backwards to determine how much you’d like to have saved every five years leading up to retirement.
Track your progress
Look at your current plan for retirement on a regular basis to make sure you are still on track to meet your goals. A lot can change in your life between now and retirement; however, if you stick to the course you’ve mapped, you’ll ensure that you have a successful and enjoyable retirement.
CNN© has several online calculators that can help you estimate how much money you should be saving now for retirement.