When talking about how much you should save for retirement, people often say 10% of your current salary. While this is a good place to start, the pros suggest that you should aim more towards 15% of your salary.
Why is this? Let’s say you start saving 10% in your late 20s. As you get older and life gets in the way, you have to start dipping into your savings, and you save even less. To save yourself and replenish those funds, as you get older and start making more money, you should be putting away about 15% of your salary.
However, when speaking about how much you should actually have in your retirement funds, there is no set rule or even guideline of how much is going to work for you. There isn’t a formula or percentage that actually can predict how much you should need. Life is unpredictable and there are too many variables that actually affect how you should be saving towards retirement.
Even with that being said, you should use some sort of calculator to help you make sense of all this mess. While it can’t give you a set number or formula to calculate how much you should be saving, it is a nice guideline to help you begin to start saving the right amount of money for you and your retirement.