18 Apr How Much Should You Really Set Aside for Retirement?
Posted at 14:31h
It’s true that many Americans are ill-prepared for retirement, but the situation isn’t as dire as some may think.
About half of U.S. workers are actually on track to retire comfortably, according to research from the Center for Retirement Research at Boston College. What are they doing right?
The center estimates that in order to maintain their lifestyle in retirement, households need about 70 percent of preretirement income on average. Under current law, Social Security can replace about 36 percent of their final inflation-adjusted earnings. To make up the difference, it estimates savers need to set aside about 15 percent of their pay over the course of 30 years to retire comfortably.