Money Fix: Saving for retirement
The time to start saving for retirement is in your 20s, although anytime is a good time, the experts say. Credit: iStock
Most of us don't know how much we'll need to retire. In 2011 only 42 percent of Americans surveyed said they've attempted to figure out how much they'll need, according to the Employee Benefit Research Institute.
And confidence in a comfortably funded retirement is at a 21-year low: Just 27 percent of respondents said they feel they'll have enough for their "golden years."
Gail MarksJarvis, Chicago-based author of "Saving for Retirement without Living like a Pauper or Winning the Lottery," did the math.
For example, to live on $70,000 per year (including income from Social Security) for 30 years of retirement, you'll need $1 million saved, she said. (Click here to calculate what you'll need at choosetosave.org.)
To save $1 million, using an IRA or 401(k), and assuming a 10 percent return on the stock market over time, here's how much you'll have to save now:
If it seems impossible, start small, and have the savings drawn directly from your paycheck, said MarksJarvis.
New Year's resolution: Start now!
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
