How much you should be saving for retirement is a common question everyone wants to know.
According to retirement plan providers the rule of thumb is to save at least 10 times your income if you are planning to retire by age 67.
Here is how much cash they say you should have stashed away per age:
- By age 30: the equivalent of your annual salary saved; if you earn $55,000 per year, by your 30th birthday you should have saved $55,000.
- By age 40: 3 times your income
- By age 50: 6 times your income
- By age 60: eight times your income
- By age 67: ten times your income
Bottom line is having savings milestones for each decade of your life can help motivate you to save, knowing that the end goal means retirement at least at the age of 67. The main takeaway is that you can start saving now, no matter what age. The first step is to have a plan and start putting aside cash today.
This is a big goal and certainly more manageable if you start early and have many years to reach it.
Some of us did not have these tactics. Now what?
Do you have life insurance policy? Do you need your life insurance policy? Did you know that your life insurance policy is an asset?