It’s never too early to start planning for retirement. But how much should you be saving? The answer depends on many factors, such as your current age, income level, goals, and lifestyle. It’s important to do your research and tailor a plan that fits your individual needs. Let’s explore some considerations when saving for retirement.
Your Age Matters
Your age can play a big role in determining how much you should save for retirement. If you are younger and have time to spare, we believe you should likely save more aggressively. This means having a higher percentage of your income going towards retirement savings each month, with the goal of reaching your desired amount by the time you hit retirement age. On the other hand, if you are closer to retirement age and already have a healthy nest egg saved up, then it may be recommended that you save more conservatively so that your savings will remain intact until they are needed in retirement.
Your Income Level Matters Too
Your income level is also an important factor when it comes to planning for retirement. Generally speaking, it is recommended that those who make more money should save a higher percentage of their income than those who make less money each month. However, this does not mean those with lower incomes should not be setting aside money each month—everyone should strive to put something away to secure their financial future!
Create Goals & Adjust Your Plan Accordingly
When creating a plan for how much to set aside each month for retirement savings, it is important to set realistic goals which can be adjusted as needed over time. For example, if your initial goal was to save 10% of your monthly income but this proves too difficult due to lifestyle expenses or unexpected costs popping up throughout the year, it may be necessary to adjust this goal down slightly until such time as these expenses and costs become more manageable or disappear altogether from view. Additionally, if possible scenarios arise where additional funds could become available—such as an inheritance or bonus at work—it may be worth considering increasing your monthly contributions accordingly in order to better prepare yourself for life after work has ended!
Saving for retirement is an important part of financial planning and requires an individualized approach tailored specifically toward meeting one’s specific needs and goals. By understanding how factors such as age and income level can affect one’s ability (or inability) to set aside funds each month toward their nest egg, individuals can create realistic plans which allow them greater flexibility when preparing themselves financially for life after work ends! We welcome the opportunity to have a conversation with you about your own retirement planning. Please check out our “Contact Us” page to schedule a meeting to discuss!
Any opinions are those of Rademacher Financial, Inc and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with us at Rademacher Financial, Inc. about your individual situation.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.
Rademacher Financial, and Raymond James and its advisors, do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.