The number one concern for the future of Americans is retirement. The financial crisis of ‘08 was a wake-up call for most—so much so that some analysts have predicted the retirement age will gradually rise as far as age 90.
According to a recent survey conducted by the National Institute on Retirement Security, the majority of baby boomers are getting to the point where they have to decide whether they want to retire and risk running out of money.
It has not been a picture-perfect scenario for our current retirees but many of them lived through the Great Depression or the immediate aftermath of it. This experience that was lived through and talked about extensively caused many from this generation to save every penny.
The Economic Policy Institute shows the average savings in America by age:
These numbers are incredibly dismal. Keep in mind, hopefully by retirement age you have absolutely no debt including your home so you will require less income to live.
When I started my career, my trainer told me to put money into my retirement account. That was the extent of the retirement advice I was given in my early years – the years that have the most impact on retirement.
I will be upfront with you on this one, there is no magic number. A general rule of thumb is to put 15% of your income away each year in your retirement account.
When I finally realized I should be contributing to retirement, I started with a percentage of my income. I set up my retirement account to take 10% out of my checks so if I had a month with more overtime, I contributed more to retirement.