When saving for retirement; how much is enough?
To replace 60% of your final salary in retirement, this is how much you’ll need to save (according to Claude Hannah, a financial planner):
40 years left to retirement (you need to save 15% of your income)
35 years left to retirement (you need to save 18% of your income)
30 years left to retirement (you need to save 22% of your income)
25 years left to retirement (you need to save 28% of your income)
- 20 years left to retirement (you need to save 36% of your income).
Hannah made relatively conservative assumptions to arrive at these estimates.
He also assumed the investor has no retirement savings and used annuity rates for men (women need to save a bit more as they typically live longer).
Play around with this very simple, easy-to-use “retirement calculator” from 10X Investments.
(You might have to sit down first.)
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