How much should I be saving now?

The amount that you contribute to your retirement savings can be one of the most important aspects of retirement planning, and may be the biggest factor in determining how much savings you will have when you retire. Consider the following two options for determining how much you may need to save each year. 

• Option 1: Use an online calculator
  Since so many personal factors can affect the amount you should save for retirement, you may want to use an online calculator to help factor in some of these variables. 
  • Start by determining how much you will need to save now to enjoy a comfortable retirement.
  • Be sure to check if your employer will match your retirement contributions. If saving is an issue for your budget, contribute at least as much as the match. Matching contributions can provide a valuable boost to your retirement savings.
  • After answering a few brief questions, including the amount you are currently saving, you’ll get a better idea if you are on track, or whether you need to boost your monthly savings. You will have the opportunity to create some “what-if” scenarios – for example, “what if” you increased your savings rate or planned to retire a few years later?
  • Keep in mind that saving even a little more today can have a big impact years from now. 
• Option 2: Work with a financial advisor
  Working with a financial advisor to develop your retirement plan can help ensure your strategies are aligned with your goals and adjustments are made over time to help you remain on track. 

If you are unable to save what a calculator or advisor indicates to you, still try to save something and at least up to any matching funds, if available. A small start today can have a big impact later.