How Much Do I Need to Save?

Another common question is “will I run out of money?” These are complex question. They involve retirement planning, estate planning, and gifting. They incorporate your expected life style and goals. Unfortunately, they cannot be answered simply and should incorporate 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 appropriate 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 retirement benefits. **At age 55, the person will realistically 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?

To help you determine the answer to this question, we propose a discussion framed around these four questions:

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

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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