Determining how much to save for retirement remains one of the most pressing financial questions for workers across all age groups. Financial planners suggest that the answer depends on individual circumstances, lifestyle expectations, and projected retirement age.
A common rule of thumb suggests aiming to replace 70-80% of pre-retirement income, though this can vary significantly based on individual needs and circumstances. Factors such as housing costs, healthcare expenses, and desired lifestyle all play crucial roles in retirement planning.
Experts recommend starting to save early, even with small amounts, to take advantage of compound interest. They also stress the importance of maximizing employer matching contributions and taking advantage of tax-advantaged retirement accounts.