In July I posted an article titled “What’s Your Number?” to help answer the question “am I saving enough for retirement?” For those within 10 years of retirement the article and on-line calculator help’s to zero in on your savings goal giving you an opportunity to adjust your retirement plan as necessary.
Unfortunately for those several decades from retirement, the calculator can return a daunting figure that may seem impossible to attain and may even discourage some from saving. To solve this problem I’ve developed an age-based milestone calculator to help gauge how far along you should be in your retirement savings plan.
For example, if you are 25 years old with an expectation of retiring at age 70 and are currently earning $40,000 per year, you should have retirement savings valued at approximately $10,000 by now. At age 35 earning $50,000 per year, your current target is $50,000. At age 45 earning $60,000 per year, your current target is $180,000.
Go to Milestone Calculator and enter your current age, current annual income, and age at which you hope to retire. The result will be where you should be today.
Caveat – this tools is designed to encourage and motivate saving for retirement at an early age. There are many individual variables that need to be taken into consideration if you are within 10 years of retirement.