All the available data show Americans are not saving enough for retirement — or for other financial goals. In fact, recent research from Bankrate shows that 65% of Americans are saving 10% of their income or less, with 19% of families saving nothing at all.
The low savings rate is leading to a retirement crisis in America, with most Americans having far too little to sustain them through their golden years.
You don’t want to reach retirement without the nest egg you need to thrive, so you need to decide how much to save for retirement. The chart below should help.
How much? That depends
That amount is going to vary depending upon the age when you start saving and what your goals are.
The chart shows how much you’d end up with at age 67 (the full retirement age for Social Security for those born in 1960 or after) if you start at different ages and save different percentages of income in a tax-advantaged savings account. The chart doesn’t factor in any employer matches on a 401(k); it simply looks at total percent of income saved.