How much you need to save for retirement by the time you are 40 depends of course on your desired retirement lifestyle and the amount needed to fund it. Without those details, I unable to offer you an opinion.
There are online calculators available of course. However, here is a retirement worksheet to help you understand the process. I have used 6% for illustration purposes only, it could be higher or lower and is only to give you a point of reference. Age 65 was used as the retirement age (25 years in the future), Again. this is for information purposes only.
1. Annual retirement income which must be provided by savings $_____
2. Amount you must save to generate income $_____
(line 1. X 11.55)
3. Amount you have already saved $_____
4. Amount these savings will have grown $_____
by the time you retire (line 3 X 4.2919)
5. Amount of savings still needed $_____
(line 4 minus line 2)
6. Amount you need to save each year $_____
(line 5 X .01720)
If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
That is a great question! You are very wise to be focused on accomplishing a goal for your retirement, and for setting an early goal. It is very difficult to give you a number that works for you though, without having a lot more detail about where you are in the process now. Are you 40 next year? Realistically, that number would be different from what it would be if you are 25 next year. I also have no idea of your expenses, spending habits, medical needs, etc. A good rule of thumb? Have 8-10 times your current salary put away if you want to live your current lifestyle. I'd also advise to have some type of hedge against long term care costs, as statistics show 70% of Senior Citizens will require it at some point, and those costs have wrecked many a retirement fund that would have been fine otherwise. Pleas contact an advisor who can look at your situation, and give you some tailored advice. Thanks for asking!
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There are online calculators available of course. However, here is a retirement worksheet to help you understand the process. I have used 6% for illustration purposes only, it could be higher or lower and is only to give you a point of reference. Age 65 was used as the retirement age (25 years in the future), Again. this is for information purposes only.
1. Annual retirement income which must be provided by savings $_____
2. Amount you must save to generate income $_____
(line 1. X 11.55)
3. Amount you have already saved $_____
4. Amount these savings will have grown $_____
by the time you retire (line 3 X 4.2919)
5. Amount of savings still needed $_____
(line 4 minus line 2)
6. Amount you need to save each year $_____
(line 5 X .01720)
If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.