Retirement Savings By Age
Published: March 11, 2019
Retirement Savings By Age: A Planning Guide
How much retirement savings should you have by the age of 30? How about 50? There’s no simple answer to this. Most often, the amount you need to save depends on how you plan to live your life during retirement. The type of investments you choose plays a role in this, too. If you are like many others, though, you just are not sure what your retirement savings should be at this point.
It’s always best to talk to your retirement planning professionals at your credit union to create a customized plan. However, there are a few considerations to keep in mind.
How Much Do You Need?
There are a variety of rules and guidelines out there regarding retirement savings. Here are a few ideas to help you get started.
- Use your salary as a guideline. By the time you are 30, try to have at least your annual salary saved for retirement. By the time you are 40, aim to have three times your current salary. And, when you reach 50, aim for six times that salary. Your goal is to have 10 times the amount of your annual salary put away by the time you retire.
- Work with your retirement savings team to learn what your nest egg will grow each year. Looking for at least a six percent average annual growth rate, for example, can help you see enough growth depending on your age.
- Another basic tool is to simply save as much as possible. Saving at least 10 percent of your annual income every year until you reach retirement age is one option. You may wish to bump this up if you are over the age of 40.
It’s impossible to have a specific figure. It is always best to work closely with your retirement planning team at your credit union to create a more balanced projection based on your income, age, and retirement goals.
Looking for Retirement Solutions?
Let Santa Clara County Federal Credit Union help you. Our team works closely with you to understand your needs and to create a customized retirement solution for you.
To learn more about County Federal and our retirement savings options, click here.