2. KNOW HOW MUCH YOU’LL NEED
Define your goal and craft a plan. A retirement plan doesn’t have to be daunting—it’s important to just get started. The next step is to develop a plan that will take your own situation into account. Once you know where you’re heading, a comprehensive retirement plan is like any good GPS. It helps you get and stay on track to your destination—even as your life, the markets and the economy change.
The retirement savings checkpoint tells you how much you should have invested today to be on pace toward maintaining your current lifestyle through 35 years of retirement. If you’re below your checkpoint today or have a different vision for your retirement, you may need to work with a financial professional to personalize your plan. Be sure to review and update it regularly.
The key to getting on track, and staying on course
A successful retirement can be achieved by saving as much as possible during your working years. The checkpoint in this table assumes that you save 10% of your gross annual income — significantly more than the average annual savings rate in America. The good news is that you are in complete control of how much you save, and your employer may help with a company match, so make savings a priority.
