This can seem like an impossible question to answer, especially if retirement seems way off in the distance. However, we can provide you with some clarity by focusing on some key questions you can ask yourself now.
First, think about what "retirement" means to you. Do you want to retire at a certain age? Or are you working toward the financial freedom to do what you want, when you want? Creating your own "vision" for this stage in life can help you and your financial advisor set goals and figure out how to meet them.
How much you need to save is really driven by how much income you need in retirement. If this sounds difficult to imagine, start by estimating how much you spend each year now.
Your financial advisor can help you:
When you want to retire determines how many “saving years” you have and how many years you’ll spend in retirement. Think about it this way: The earlier you retire, the longer you'll need to provide for your income needs without working full-time. Also, remember that programs, like Social Security and Medicare, aren’t available until you reach your early to mid-60s.
You may even want to think about delaying claiming Social Security to increase your benefit amount. Ultimately, the earlier you want to stop working full-time, the more you should plan for making up the difference until these programs begin.
By answering these questions, you can start to determine how much you may need for the retirement you envision, and ultimately how you can get there. Use our Retirement Calculator to learn more about the progress you're making now and whether you might be able to reach your goals.