Everyone’s always looking for a great retirement calculator to ensure they’re saving enough for retirement. Here’s a great article from the Center for Retirement Research at Boston College about how much we should be saving towards retirement.
The brief’s key findings:
- The National Retirement Risk Index framework is used to address how much working-age households need to save for retirement.
- A typical household should get a third of its retirement income from a savings plan, with the low income needing one quarter and the high income one half.
- A typical household needs to save about 15 percent of earnings, with the low income requiring less and the high income more.
- For those with a savings shortfall, the necessary savings hike is much more feasible for younger households than for older households.
- Starting to save early and retiring late dramatically reduce a household’s required saving rate.
You can read the entire article here.