What You Should Save For Retirement


When it comes to saving for retirement, there is no such thing as too much. But how much you should save depends on your age and situation. So how much is enough? How do you determine the amount you need to set aside? And how long will that be enough? If you’re not sure, we can help. This article provides useful tips on seniors people meet and calculating the amount of money needed to reach your goals.

How Much Should You Save for Retirement?

How Much Should You Save for Retirement

Most experts recommend saving approximate 10% to 15% of your pre-tax income each year for retirement. It is generally best for high earners to reach the top of that range; low earners can usually hover closer to the bottom since Social Security may replace more of their income.

However, there is no one-size-fits-all formula for determining how much you should save for retirement. More than likely, it depends on your future, both the known and the unknown, such as:

  • Approximately how long you will live
  • Spending and saving levels at present
  • In retirement, what lifestyle do you prefer?

The following steps will show you how to calculate how much you should save for retirement:

Estimate Future Income Requirements

Estimate Future Income Requirements

As a matter of fact, this is the step that requires the most time, but if you can make it through it, the next one will be a breeze. In addition, even if you keep a loose budget, you already have a leg up on the competition. To figure out what income requirements will be required in the future, it is necessary to examine current spending.

Take Into Account Common Guidelines

The common guidelines one should take into account is that once they have saved up enough money for retirement, they should start to invest that money. One should also save up the appropriate amount for their specific age and personal situation, such as saving more than just the recommended 10% of earnings in which salary increases as you get older, and also not changing how much they will still saving from year to year.

Each strategy generally has three steps:

  • Identify your specific personal goals;
  • Develop a calculated plan to reach your personalized goals within a reasonable time frame; and
  • Implement the plan(s)

Make Use of a Retirement Calculator

Make Use of a Retirement Calculator

By combining your annual spending estimates and projections, a retirement calculator can give you a good idea of where your savings stand. You’ll find defaults for inflation projections, life expectancy, and market returns in most calculators. Retirement is the time in which you start to live on your retirement savings that you’ve accumulated over the course of your lifetime. It’s important to plan for this event so that you can enjoy life after work. One way to guard against not having enough money when you retire is by using a retirement calculator or corresponding tool.


How much to save for retirement is a big question that many people ask. There are several ways you can calculate how much you need to save for retirement, but the most accurate way is using a financial calculator. The best way to figure out how much you should be saving is by doing a little research on the topic. Do some research online or talk to someone who has already retired and ask them what percentage they contributed towards their retirement savings.