How much you should have in your retirement fund at every age
If you’re counting on Social Security to fund your retirement, you might want to think again. According to MarketWatch, the two funds that pay Social Security’s benefits — the Old-Age and Survivors Insurance and the Disability Insurance trust funds — will run out of money in 2035 if Congress does nothing to fix the program. While Social Security benefits won’t disappear if this happens, the funds will come only from taxes and therefore payouts will be lower. With less help from the government, it’s important to start saving now to protect yourself and your loved ones during your golden years.
There are numerous studies and theories about how much you should have saved for retirement, emergencies, necessities and other expenditures. For example, studies by Fidelity and T. Rowe Price show the retirement savings benchmarks for where you need to be, starting at age 25. Both studies stress the need to save early, maintain a significant level of contributions throughout life and maintain an age-appropriate allocation to equities throughout.
Don’t wait for retirement to sneak up on you. Here are some expert tips for getting your retirement fund in order before you leave the working world behind and how to progressively grow your emergency fund.
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