Are You Saving Enough to Retire?
A new survey from Bankrate.com finds 29 percent of working Americans are increasing their retirement savings compared to last year. But half are contributing the same and 16 percent are saving less.
A 35-year-old who puts $5,000 in a traditional IRA every year could have around $500,000 at age 65. But if that same person started contributing when they were 25, that retirement account could be $1 million.
Greg McBride is chief financial analyst at Bankrate.com. He says, “If you are not saving at least 10 percent of your income for retirement, you need to get there pronto and once you do, look to bump that up.” McBride says the goal is putting away a full 15 percent of your income to ensure you have enough to retire.
