How Much Do I Need to Save?

Another common question is “How much do I need to save?” Of course, this is a complicated question. After all, it involves retirement planning, estate planning, and gifting. Furthermore, this will also include your expected life style and goals. Unfortunately, this cannot be answered simply and should involve a robust financial planning tool like MoneyGuidePro®.

Required Savings Rate for Retirement

(Percentage of annual salary. Assume $0 of Accumulated Savings at the Beginning Age)

How much do I need to save for retirement?
*Assumes proper asset allocation for reasonable-risk investor through accumulation year; also assumes normal raises and an 80% wage replacement ratio at Social Security normal retirement age and includes Social Security benefits. **Realistically, at age 55, the person will have to delay retirement until age 70. Source: Dalton, Michael A. Fundamentals of Financial Planning. Money Education, 2013.

The biggest question faced by retirees or those working to save for retirement is…

Have I saved enough for a comfortable retirement?

Finally, in order to help you determine the answer to this question, we will propose a discussion framed around these four questions:

  1. First, What do you expect from retirement and how can you fulfill those goals?
  2. Next, For how many years do you expect to be retired?
  3. Furthermore, How might inflation affect your portfolio over time?
  4. Finally, How can scenario analysis help you to think about your retirement?

During the COVID-19 crisis, we continue to operate at our normal hours. We are available to meet by phone or virtually. To learn more about what we can do for you, give us a call at (203) 458-6800. 

Retirement Guide Check out our FREE GUIDE on Are You Ready For Retirement?

Call us at 203-458-6800 if you would like a hard copy of the Guide.

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