Wish you knew the exact amount of cash you’ll need to stash for retirement?
Business analysts recently created a new, quick method to figure out just how much you’ll need in your Golden Years.
It’s called “The Number” and it’s simple: You need to have saved eight times your final salary by the time you’re 67 if you want to maintain your current lifestyle. Which means, if your annual salary at retirement age is $50,000, you’ll need $400,000 is to retire.
And instead of panicking and trying to stockpile it all at once, which is virtually impossible. Experts suggest setting a few benchmark dates, and working toward that magic number.
• By age 35, you should’ve saved one times your salary.
• By 45, you should be up to three times your salary.
• In your retirement savings timeline, at 55, you should have saved five times your salary.
And when you’re 67, it’s time to hit the beach because you should have 8 times your salary saved for retirement.