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Are you saving enough for retirement?

Are you saving enough for retirement?

Credit: AP

by Terri Gruca

Bio | Email | Follow: @TerriG_KVUE

kvue.com

Posted on July 21, 2010 at 11:38 PM

Having grown up in a house with a dad who was an accountant, I feel fortunate I learned all about saving at an early age. Yet it seems like each year it gets tougher to gage if my husband and I are saving enough.

Researchers with the Employee Benefit Research Institute have found 41 percent of Americans in the lowest pre-retirement income level will run short on money after ten years of being retired.

Those same researchers also looked at how much money people have saved and broke it down by age. I have to say I was shocked to see how little people have saved. Here’s a look:

 

  • < 35: $6,306
  • 35 – 44: $22,460
  • 45 – 54: $43,797
  • 55 – 64: $69,127
  • 65 – 75: $56,212
  • 75+: (sample size insufficient)

Even if you’re doing better than the average person chances are you're in trouble. The average retiree spends 4 percent of their nest egg a month. So if you expect to spend $50,000 a year you'll need to save $1.25 million by the time you retire.

It can be tough to gage how much money you’ll need but there are several tools out there to help. One of the best is Choose to Save.org.

The Ballpark Estimate can help you factor in your current age, when you plan to retire, how much you’ve already saved, how much you’ll get from Social Security (if it’s still around when you retire) and how much you’ll get from pension plan (if you’re lucky enough to have one of those).

You’ll find some great 401K saving information here.

 

Or check out these great Forbes tips for saving at any age.

Regardless of what you do, do something. There's no time like the present to think about your future.

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