Are You Saving Enough To Retire? Find Out Here

According to Yahoo News, 1 in 3 Americans has approximately zero dollars saved for retirement. That’s correct; zero dollars. My 4-year-old has way  more than that saved for some random toy she wants to earn through doing things appropriately around the house, so it’s weird that 1 in every 3 grown up adults have no retirement at all. Unfortunately, that’s the world we live in. We are largely a society of right here, right now, instant gratification souls, and that’s not going to bode well for most of us when we become old enough to retire (assuming they don’t keep raising the age and none of us actually make it that far).

The rest of us are saving for retirement, but are we saving enough? We don’t even know. It’s not that we cannot save for retirement. It’s that we don’t. We, for whatever reason, simply do not save enough money to retire on. Some don’t save, and some of us wonder if what we are saving is enough. I know that I ask myself this question on a regular basis. Are my husband and I putting away enough money to use during our retirement? Are we contributing enough? Should we be saving more? Should we increase what we put away or keep it focused on the college educations of our four kids since they’re going to college some day?

If you’re not sure you are saving enough for retirement, welcome to my life. I have no idea if I’m saving enough, if we are doing what it takes to save enough or even if we will even be able to retire. But it’s not difficult to find out whether or not we are saving enough. The bad news is that many people will have to do some serious catch-up to be able to retire comfortably at some point, but some are doing a good job now. Before you panic and wonder if you’re ever going to be able to retire, understand that it is easier than you think to catch up to where you need to be, and you can do it.

Additionally, if you are just starting out at your first real adult job and wondering what you should save and how you should save it, now is a good time to check out this chart to find out what you need to save if you want to retire at a decent age. This information was formulated by Charlie Farrell, the CEO of Northstar Investment Advisors in collaboration with CNN Money. Read on to find out if you are where you need to be on the chart.

Your age – 25

Depending on where you fall in the earnings range, you have to have a certain amount of your income put away for your retirement; typically around 10% of your income. Here is the breakdown of your income and recommended savings at this age:

$40k per year income = $4k retirement

$65k = $6500

$90k = $9k

$115k = $11k

Your age – 35

$40k = $60k

$65k = $97,500

$90k = $135k

$115k = $172,500

Your age – 45

$40k = $148k

$65k = $240,500

$90k = $333k

$115k = $425,500

Your age – 55

$40k = $248k

$65k = $461,500

$90k = $639k

$115k = $816,500

Your age – 65

$40k = $480k

$65k = $780k

$90k = $1.1 million

$115k = $1.4 million

There are so many factors that play a role in this method of calculation, including things like Social Security and other forms of income, which is not always a guarantee. Worry not, though, if your retirement savings is not exactly on track according to this chart. Most people will not have this kind of savings at any age, but that doesn’t mean your plan for retirement is ruined. You will simply need to work harder to save more and make better investments. Outside factors also play a role in your financial situation, and those are not always calculated in methods of this nature.

What to do next

Now that you know where you stand and where you should stand, it’s time to take action to get where you need to be. The best financial advice we can give you in this situation is not to wait to start saving more. You should do your best to start saving now so that your retirement account can have all that it needs to help you retire when it’s time. But there are ways you can increase your contributions, save more and worry less.

A financial advisor might not be a bad idea, either. When you have someone on your side to help you figure out what you need to save and how to do it, you can do more. We have a few tips that will help you increase your retirement savings starting right now.

• Contribute the maximum amount allowed on your plan. It’s imperative that you find a way to do this so that you can build your retirement savings and have what it takes to leave your job and enjoy the rest of your life one day.
• Take advantage of employer-based plans that match your contributions. For example, you can contribute as much as possible on your plan so that your employer will off you the kind of free money that will really help you make the most of your retirement. After all, if you’re not contributing as much as possible, you are not getting as much free money as possible from your employer.
• Minimize your expenses to you can contribute more. Most people forget that they can minimize their budgets, live a bit more simply and really enjoy life a lot more if they were to do it. That would leave more of their income available to save and allocate toward retirement, which means more enjoyment in the golden years.

Ask yourself this question; is having it all now worth not having much at all later or would you rather live simply now so that you can really enjoy your life as you get older?

Photo by Christopher Furlong/Getty Images