Retirement Planning: How Much Should You Save by Each Age?

Understanding how much you should be saving for retirement at each stage of your life is key to achieving financial freedom. Here’s a general guide on how much you should aim to save by each age:

• In Your 20s: The earlier you start saving, the better. Aim to save at least 10% of your income for retirement, and try to contribute to employer-sponsored retirement plans like a 401(k).
• In Your 30s: By now, you should have three times your annual salary saved. If you haven’t already, consider diversifying your investments.
• In Your 40s: Aim to have four to five times your salary saved by the time you hit 40. Now is a good time to start focusing on maximizing your retirement contributions.
• In Your 50s: At this point, aim for six times your salary saved. As you approach retirement, increase your contributions as much as possible.
• In Your 60s: By the time you reach 60, aim to have eight times your salary saved. If possible, try to delay retirement to ensure your savings last throughout your lifetime.

By following these guidelines and making adjustments to your savings plan as needed, you can ensure that you’ll be financially secure when it’s time to retire. MLMI offers retirement planning services that can help you tailor your savings strategy for your specific needs and goals.