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2: Size Up Your Situation

Size Up Your Long-Term Savings

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Take a Guess:

What percentage of working-age households are at risk of not maintaining their standard of living once they retire? Click on one of the options below:

  • 10 percent
  • 25 percent
  • 50 percent
  • 60 percent

Source: The National Retirement Risk Index (NRRI) as reported by the Center for Retirement Research.


The percentage of your salary put aside for retirement is your retirement savings rate. Even in retirement, you will want the financial freedom to make choices that allow you to enjoy life — one of the core aspects of financial well-being.


According to the Center for Retirement Research at Boston College, if you are 35 years old and earning an average wage (around $48,000), you should be saving about 15 percent of your earnings toward retirement, assuming you retire at 65 and earn a 4 percent rate of return.


Establishing a regular savings habit at a young age, earning a decent rate of return and retiring later are crucial elements to determining your own retirement savings rate.


Calculator

How Much Is Enough Retirement Savings?

Use AARP’s Retirement Calculator to find out your progress toward retirement savings. When you get your results, you can adjust components to see how decisions such as retirement age affect your savings needs.


Keve and Meghan

Keve and Meghan

No one starts out a financial expert. And, as Keve Brockington found out, even a financially sound upbringing can get lost when you begin your own journey into adulthood.

Find out more about how Keve and his wife Meghan have turned their financial attention to achieving their dreams for education, homeownership, travel, family and saving for the future.

What areas of your financial life will need attention as you size up your current state of affairs?

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