When you are in your productive years which are from later 20s, 30s, 40s, and 50s, you are doing what you can to get by and to live a little bit if you have a family. Everyone’s situations are different as some people are not married, and if they earn a good living, they have more money to put away for retirement. The same usually applies to those who are married but do not have kids, even if one is not working, which also depends on how much income the other earns.
However, if you are married with kids, and you are not making much money even if it is a double-income, then saving becomes more difficult. However, it is doable if you budget your money and live a frugal lifestyle. It becomes even more of a challenge when a child has special needs that require you to spend a lot more money. However, regardless of your financial situation, one of the things to keep in mind when you are saving money is to save for retirement. You may look at the situation that you are currently facing and not consider the future. That is why if you don’t save for retirement, you will end up in a bad situation where you will be barely scraping by. You will also likely have to work during retirement age, and you are not likely going to get a high-paying job either.
Therefore, you do need to find enough money to save up for retirement if you want to retire by the age of 67. How much money should you save? The rule of thumb is to save about ten times your income if you want to retire at that age. If you choose to retire at 70, then you may get away with not saving as much.
You Will Want To Focus On Your Age-Based Saving Milestones For Retirement
Here is the thing, In order to reduce your worries about retirement, the ideal thing to do is to focus on age-based savings milestones. Let’s break down how much you need to save based on your age. If you are 30, you will need to save money that is equivalent to your income. That means if, for example, you earn $50,000, you should have $50,000 saved up by your 30th birthday. When you are 40, you should have three times that amount saved up which would be $150,000 if you are using that example. When you are 50, you will need to save six times your income. At age 60, you will need to save eight times your income, and then at 67, it should be ten times your income.
Those above saving guidelines apply to anything that you have in your retirement account such as a 401K. Investment companies will match your investments. Your savings goals will vary from the goals of someone else, but the rule of thumb is to look at the age-based savings milestones so you stay on track, even if they vary by little.
How Can You Start To Save?
The best thing to do is to save 15 percent of your income yearly as of the age of 25 and over your lifetime and invest 50 percent of your savings in stocks and bonds. You will end up getting a higher return on money. If it seems like a goal that is out of reach, then the best thing to do is to talk to the financial advisor that can help you save the best way possible so you will have the money you need so you can retire comfortably. Ensure that you speak to a reputable one who has been known to help others.