The retirement crisis in America is slowly starting to create an atmosphere of tension for the working force. Each passing year more Americans enter retirement with entirely too little money and financial planning for the last stage of their lives. With such a crisis on our hands, what do we do?
We learn from the mistakes of our elders. Retirement is a topic everybody needs to start thinking about from the minute financial independence is achieved. Banks such as columbia bank Sayreville are the perfect place to begin saving for your retirement. However, the question that arises is how much do you need to save for a comfortable retirement?
|270 Main St, Sayreville|
|NJ 08872, United States|
|Phone: +1 732-432-9680|
How Much Do I Save
As a rule of thumb, some researchers say that about $1 million is a safe amount to keep in your nest egg. Approximately 12 times your pre-retirement salary is what you will need to save. While there are approximates that you can consider, how much you need for retirement is unique to your situation.
When planning how much you need in your nest egg, you’ll need to understand where you’ll be spending. Things like healthcare might be more expensive than you anticipate, but you might not be spending too much on clothing or transport.
Why Start Early
Procrastination may work for college students attempting to finish an essay, but it won’t work when you have a retirement goal to achieve. Starting early means the chances of hitting the goal are higher. Let’s face it; even a college student would have an easier time with their essay if they had planned it out earlier!
Saving for longer also gives you the chance to save more. When you’re setting aside money, you’re letting the balance and interest grow and accumulate for when the time comes. Saving for longer also means there’s no mad rush to accumulate the most wealth you can when the time comes.
Retirement is a very real thing that closer with each passing year. To start preparing for it, you first need to know how much you’ll need to save!