How Much Should You Save Each Month?

The first step in retirement planning is to calculate how much money you will need to have saved in order to cover your expenses. This can be a difficult task, as there are many variables to consider, such as inflation, investment returns, and how long you plan to live in retirement.

A good starting point is to estimate that you will need 70% of your pre-retirement income to maintain your standard of living. This number can be adjusted based on your specific circumstances. For example, if you plan to downsize your home or travel extensively in retirement, you may need less income than someone who plans to stay in their current home and maintain a similar lifestyle.

Once you have an estimate of the income you will need in retirement, you can use a retirement calculator to determine how much you need to save each month to reach your goal. There are many different retirement calculators available online, so be sure to shop around and find one that best meets your needs.

If you are already saving for retirement, congratulations! You are on the right track. But how much should you be saving each month? That depends on a number of factors, including your age, your current salary, and your retirement goals.

If you are in your 20s or 30s, you should be saving at least 10% of your income for retirement. If you are in your 40s or 50s, you should be saving at least 15% of your income. And if you are 60 or older, you should be saving at least 20% of your income.

Of course, these are just general guidelines. You may need to save more or less depending on your specific circumstances. For example, if you have a lower income or you are starting to save for retirement later in life, you may need to save a higher percentage of your income to reach your retirement goals.

If you are not sure how much you should be saving for retirement, a financial advisor can help you create a personalized savings plan.