Hello Sophisticated Spenders!
Here we are at the end of National Save for Retirement Week.
I hope you’ve learned how important it is to save for your retirement.
And I know you’ve completed the calculators here-> “Introducing National Save for Retirement Week“
[tweetthis]What grade would you give yourself on your saving for retirement report card?[/tweetthis]
I give myself a B because I should be saving a little more.
I am currently saving 6% of my income in a traditional account (with a 5% match from my employer) and 2% in a ROTH (after taxes).
According to the Merril Edge Personal Retirement Calculator, I will have a monthly shortfall of around 30%. For example, if my necessary monthly income were $1,000, I would be short $300 per month.
I am ok with this decision because I will receive a pension and social security (yes it’s ok to include social security in your calculations).
Those combined will be 30% of my monthly income.
I also plan on eliminating ALL of my debts before I retire!
Notice these calculations are based on income not expenses! I expect to have lower monthly expenses in retirement.
I’d like to know how much you are saving for retirement and what grade would you give yourself.