Sunday, February 5, 2023

The 12 new rules of retirement savings

April 14, 2010 by  
Filed under Articles and Features–The era of do-it-yourself retirement is here.

You can’t rely on your employer, or the government, to take care of you in your old age.

The grim reality is that we can’t guarantee that you’ll be able to save enough for a comfortable retirement, even if you do everything right.

But following these 12 new rules for retirement savings gives you the best shot at success.

Rule 1. Work to get as close to your goal as possible.

To retire comfortably, you’ll need enough savings to replace at least 60%, and preferably 80%, of your preretirement income.

If you make $65,000 per year, want to retire about 30 years from now and replace 70% of your income for 25 years, you’ll need to save a whopping $2 million.

Our retirement calculator allows you to see how much you’ll need — and it’s a shocking number.

You should be shocked by this number. Now that you see what kind of challenge you’re facing, use it to motivate all of your future decisions.

Just remember: Even if you can’t possibly save that much, the more you have, the better it will be. Retiring with half of your goal is a lot better than retiring with none of it.


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