One important consideration to take into account when planning your retirement is how long you will need to the money to last. Obviously, none of us have a crystal ball where we can see our future, but there are steps you can take to help ensure your retirement will be comfortable. Here are some guidelines to help you get started:
WHAT SHOULD MY GOALS BE?
> Take advantage of employee matching contributions.
> Contribute as much as possible, up to $18,000 per year.
> Your retirement fund should replace 80% of your total yearly salary.
> First year of retirement, you should be withdrawing no more than 5% of your savings.
According to Fidelity Investments, here are some guidelines to help make sure you’re on track:
> You should have your current salary saved by the time you turn 35.
> By 45, you should have three times your annual salary saved.
> After turning 55, plan on having about five times your annual salary.
> When you hit retirement age of 65, it should be your goal to have at least eight times your salary in your retirement fund.
The average American is living until about 78 years of age, so you need to factor this into your plans while you are saving.