How Much You Should Have Saved By Every Age
Saving for retirement can be overwhelming. Fretting about how much money you should have saved or how much you should be saving at a certain point in your life are two questions that can weigh heavily on anyone’s conscious.
They say that every 5 years you should aim for saving the equivalent of a one year’s salary. For example, if your income is 80k a year and you are around 30 years old, you want to have at least $80,000 in your retirement fund.
Here are some bullet points on what you should be aiming for in your goals for saving for retirement:
- 30 years of age – 80k saved
- 35 years of age – 160k saved
- 40 years of age – 240k saved
- 45 years of age – 320k saved
- 50 years of age – 400k saved
Use this as a guide for the amounts you want to have saved at certain points in your life.
If saving that much seems daunting there are some tax programs that can help, such as the Retirement Savers Credit.
There will be factors that may change the amount you put away for your fund, however. These factors include a change in career, being rewarded with a raise, or having expensive medical bills that need to be paid off.
If you are behind on your retirement goals, you can look to other means to catch up. Investing your money is an option that can reap big rewards for your retirement fund. Do research on companies you want to invest in and allocate funds to do so. Help make your money work for you so you can enjoy the retired life!
You can also set an age goal for your retirement. This number will be the focal point to how much you save and how aggressive your investment profile should be to reach your goal.
Consider what type of lifestyle you want to live during retirement. If you are thinking you want to increase or decrease your expenses, then plan your savings for your retirement accordingly.
The goal should be to set aside money every month for your retirement fund, no matter if the amount is large or small. If something comes up that restricts your budget, it’s still better to save something. Getting into the habit of saving a portion of your paycheck will help you later down the line as you begin to add more to your retirement fund!