Improve your Retirement Savings

How can you improve your chance for a succesful retirement?

Retirement Calculator

“one of the best things you can do to improve your chances at a successful retirement is to use a free online retirement calculator”


Save 20%

Wade Pfau, professor of retirement income at the American College, which trains financial planners, has crunched the numbers to find a safe level of saving that would have worked in every historical market stretch going back to periods beginning in the 19th century.

He found that setting aside 16.6% of income and putting it in a diversified portfolio of [60%] stocks and [40%] bonds did the trick every time. (Good news: Employer matches count toward that savings rate.) That’s if you’re consistent about saving over 30 years.

A slow starter must ramp up higher — a 45-year-old with two times salary saved would have to go for 20%.

Savings Table
Let’s just say for a 40 year old who has no savings.
As I look at this chart, If this 40 year old wants 70% of his or her Final Salary,  this person would have 30 more years to work & save (accumulation phase) (retire at 70), and expect to live 30 more years in retirement (retirement phase) (die at 100), then this 40 year old must save:  23.27% consistently for the next 30 years (this savings rate includes any employer matches).  They would then invest this savings 60% in stocks & 40% in bonds.  When they retire, this person would then be able to take 70% of the final salary out of their savings every year.
The key to retirement savings: in your best Dory voice:  just keep saving, just keep saving, just keep saving, save at least 20%!