Here's How Much of Your Salary You'd Need to Save for Retirement If You Start After 45
Deciding how much to save for retirement can be complicated. One common technique to simplify things is to invest a percentage of your income. Traditionally, financial experts often recommended setting aside 10% of earnings for your later years, but thanks to lengthening life spans and lower projected returns, it's usually better to aim for about 15% to 20% of income.
Of course, this recommendation is for people who save throughout their careers. But not everyone does that. In fact, many people get a late start on their retirement savings and don't begin putting aside funds until they're in their 40s.
If you delay until middle age to start saving, you obviously have far less time for your money to grow. To compensate, you need to invest more in your retirement accounts. But how much more is required to end up a financially secure senior?
Source Fool.com
