How much a person should have in retirement at different ages depends on a number of factors, such as the desired retirement age and income. Many financial advisers recommend saving 10 to 20 percent of income for retirement; however, that percentage can change based on retirement age and the starting date of the savings, according to Forbes.Continue Reading
It is a good idea for people to start saving for retirement, notes CNN Money. Starting on retirement savings earlier can allow savers to make contributions to their retirement funds, as they have more time to save. However, people who want to retire early may still need to dedicate more of their income to retirement savings, even if they start saving early.
Savers can calculate the amount they should save for retirement at each age by determining the total amount of money they need for retirement and the approximate age they wish to retire. They can then use tools such as those provided on Forbes, which use income, withdrawal rates, savings percentages and interest rates to calculate the number of years it will take to reach their goal. Business Insider also provides a useful checkpoint tool to help savers calculate how much of their income they should have in retirement savings by specific ages.Learn more about Financial Planning