As of 2012, it was best that an individual have at least nine times his current pay in savings in order to retire at 60, according to AARP. With differing needs, a volatile job market and shifting portfolio values, it's beneficial for a person to have a customized solution.
It's best that an individual start saving for retirement in his 20s or 30s in order to have an easier time of successfully reaching his retirement fund goal, notes AARP. While a person can start saving later in life, doing so may require changing expectations, altering how much he spends and adopting a more modest lifestyle. An individual who starts saving up for retirement while in his 50s should mainly be focused on peace of mind during his retirement years rather than a luxurious lifestyle.
A person should consider his essential and fundamental needs while drawing out a budget for retirement, says AARP. A retirement budget can also help an individual understand his actual post-retirement expenses. While creating a retirement budget, a person should consider expenses that can be eliminated in addition to IRAs, 401(k)s and other accounts into which he can place money he saves up for retirement. If a person meets specific income requirements, there's a chance he can qualify for a special tax credit through the federal savers credit.