Getting Started Early Helps
Starting to save for retirement at a young age means that you won't have to put aside nearly as big a chunk of your income as if you begin later in life. This table assumes that you have saved nothing at the age you begin saving and that you will continue to save at the same rate until retiring at age 65. It also assumes that you plan to spend 80 percent of your preretirement income once you retire and that Social Security will account for 25 percent of your retirement income. The figures are based on your investments earning 8 percent a year and inflation running at 2.5 percent annually.
| Age You Start Saving | Savings Goal |
| Consumer Discretionary | 11.2% |
| 20s | 10 - 15% of annual salary |
| 30s | 15 - 25% |
| 40 - 44 | 25 - 35% |
| 45 | 37% |
| 46 | 41% |
| 47 | 44% |
| 48 | 48% |
| 49 | 53% |
| 50 and older | 58% or higher |
*Data based on results since April 1990
Source: Schwab Center for Investment Research
More Money Matters:
• How Much Should You Sock Away?
• The Sorry State of Most Nest Eggs
advertisement
