Are you saving what you need to for retirement? If you’re younger you may be wondering when you should start saving. If you’ve already started, you could have questions about how you should invest or how much you should be setting aside. We’re here to help!
First off, the sooner you start saving, the better! When you get your first job you should begin setting money aside in a tax-deferred retirement account. This is an investment that you won’t have to pay income taxes on until you start withdrawing money after you retire! Starting younger, even if you end up stopping- after 10 or 20 years, for example – is still way better than starting later, as your money gets more time to collect interest. The returns are well worth not being able to buy every single thing you want in your youth.Most people believe you’ll need about 70% of your salary to survive when you retire – but that depends on if you still need to pay for your house, or you want to travel the world, and so on. Each person will have to figure this out for themselves, so make sure to be honest about how you want to live after you retire so you can better estimate your expenses.
A general guideline for how much of your income you need to set aside is around 10%-15%, if you’re starting in your 20s. Use a retirement calculator like this one to help figure out if you should be saving a different amount. Again, it depends on what kind of lifestyle you’re planning on having when you retire!When you plan your budget, make sure to include enough for savings. Changing your spending habits now could help a lot in the long run, especially when it comes to your retirement. No matter your age, there are things you can do now to work on investing enough money to keep you comfortable when you finally retire. Have any more questions? Message us on Facebook, Twitter, or Instagram, or come talk with us in person at one of our branches! We want to help make your retirement not something to stress about, but something to look forward to.