To start planning for retirement, you should begin to think of how you will generate the income that you have now once you are in retirement.
To do this, you simply determine what amount of money will be needed when you retire to generate the income that you now earn. You can then calculate the amount of money you will need to save accumulate this sum of money by the time you wish to retire.
There are other quicker rules of thumb like saving 15% of your income, but you should be careful not to fall into a false sense of security about how well retirement will work out simply by savings a certain amount determined by a broad rule of thumb.
Regional Marketing Director, Capital Choice Financial Group,
The first thing is to plan young! But, if you missed the boat and you have to play catch up ball that's ok. The main thing is that you recognize the fact that you will cease doing what you are doing someday and will need something other than social insecurty! When younger begin saving 15% of your income in a Roth IRA or if you have a 401k at work have an amount taken out of your check equal to the match from the company. I do recommend a personal IRA besides the company plan.
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To do this, you simply determine what amount of money will be needed when you retire to generate the income that you now earn. You can then calculate the amount of money you will need to save accumulate this sum of money by the time you wish to retire.
There are other quicker rules of thumb like saving 15% of your income, but you should be careful not to fall into a false sense of security about how well retirement will work out simply by savings a certain amount determined by a broad rule of thumb.