By Stephen L. Thomas | May 14, 2024 | In
Many people know that saving for retirement is important, but not everyone knows how to get started. Figuring out how much to save, where to invest, and for how long can be overwhelming. However, the earlier you start saving for retirement, the more time your money has to compound and grow. Here is a guide on how to get started. Calculate How Much You Need To Save The first step in saving for retirement is determining your retirement age. The next step is calculating how much you need to save to retire at that age. As a benchmark, finance professionals recommend saving at least 15% of pre-tax income yearly. This 15% estimate aims to save at least 55% to 80% of preretirement income for each year of your retirement. People beginning their retirement savings in their 30s or later may need to save more than 15% annually. Another factor to consider when calculating how much you need to save is what lifestyle you’d like to live during retirement. You may want to maintain your current lifestyle, downsize to save on expenses or live on a