How Much Money Do You Need To Retire? 5 Strategies To Save

Abstract

How To Calculate Retirement Savings A great way to remember how you need to save up for retirement is the 4% rule. You should expect to save the following amounts of your annual salary by each age: 30: Amount equal to your annual salary 35: Two times 40: Three times 45: Four times 50: Five times 55: Six times 60: Seven times 65: Eight times More Ways To Calculate Retirement Savings We provided a few different methods of calculating your target retirement savings above, but there are several other ways to go about it. Set A Retirement Goal If you did your homework by calculating how much money you'll need to have saved by retirement, then you've already completed step one. Invest In A 401(k) Or Roth IRA Now that you've created a retirement goal, it's time to put your ideas into action! Once you've set up your 401(k) account, consider opening up an individual retirement account or Roth IRA. Both types of accounts are popular and are great options for boosting your retirement savings in a tax-deferred environment. Invest Beyond 15% Aside from investing 15 percent of your gross salary for retirement, you can bolster your efforts using a few different strategies: Max out your 401(k): One of the easiest things you can do to boost your retirement savings is to max out your employer-sponsored 401(k). 5 Tips On How To Save For Retirement Last but not least, it's important to recognize that saving up for retirement is a long and hard road. All of these strategies work great until life throws you curveballs, which should be expected. "How much do I need to retire?" should always be followed up with "How can I protect my retirement fund?" That's why you should arm yourself with some expert tips to make sure your retirement saving strategy can weather any storm: Summary Saving up for retirement is a daunting task, so much so that many Americans do their best to avoid thinking about it.