The comments above and below are excerpts from an article by troweprice.com which may have been enhanced – edited ([ ]) and abridged (…) – by munKNEE.com (Your Key to Making Money!) to provide you with a faster & easier read. Register to receive our bi-weekly Market Intelligence Report newsletter (see sample here , sign up in top right hand corner.)
- Retirement can last 30 years or more so make sure you’re doing what you can now to maintain your lifestyle during your post-working years.
- Aim to save at least 15% of your annual income, including any employer contributions.
- Even if you get a late start, saving 15% can help build your retirement savings.
Contributing a few percentage points more every year could make a big difference in your retirement savings.*
Saving 15% can significantly build your retirement savings even if you get a late start.*
Setting aside 15% now can help generate a more powerful stream of income in retirement, even after accounting for inflation. That extra purchasing power can help you maintain your lifestyle after you stop working.*
Saving 15% today can help you maintain your lifestyle in a retirement that could last 30 years or more.
*All figures assume:
- 7% annualized returns,
- a $50,000 starting salary at age 30,
- a 3% annual salary increase,
- a 4% annual withdrawal rate beginning at age 65,
- and 3% annual inflation unless noted.
(Numbers are rounded. For illustrative purposes only and does not represent performance of any particular security. Investment returns will vary and may be higher or lower than in this example.)
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