Finance: Are You Saving Enough for Retirement?

What is your rule of thumb for preparing for a secure retirement? What percentage of my income should I save every year?

Unfortunately, there is no magic formula for how much to save because the amount of money you may need to live comfortably in retirement will vary from others.

A generally accepted rule of thumb is that you should plan on saving enough so that your nest egg will yield between 75% and 89% of your pre-retirement income. New surveys, however, suggest a figure of 125% because of longer life spans and escalating healthcare costs. (You can use our Dolans.com worksheet to see if you’re saving enough for retirement.) (more…)

2 Comments July 16, 2008