How much to save for retirement?
A recent study by the Boston College Center for Retirement Research laid out suggested contributions for workers to attain 80% of retirement income as a percent of their pre-retirement earnings. Assuming a 5 percent annual rate of return and a retirement age of 66, medium earners starting contributions at age 35 should save 18% annually, while high earners would need to save 21%. Variances for each starting time frame highlight how much more workers' current earnings are needed to bridge the gap if the start of saving for retirement is pushed back.
