If you’re not sure if you are saving enough for retirement – well, you’re not alone. One might think this is a fairly simple question, but it quickly becomes quite complex - and difficult to get a concrete answer. However, one research group is willing to give an answer - the Employee Benefits Research Institute, or EBRI. The EBRI says retirement savers should follow one simple rule: put aside at least 10% of your paycheck (including any employer match). EBRI’s research showed that setting aside 10% starting at age 25 would result in an acceptably low 30% chance of running out of money in retirement. The chart below, from the Brookings Institution, shows how dramatically the chance of running out of money declines for every additional % of savings for a hypothetical 25-year old.
Saving Enough for Retirement?
| May 28, 2019