Finweek English Edition - - MONEY -

As John Camp­bell, cer­tif ied f inan­cial plan­ner and CEO of Char­tered Wealth So­lu­tions, points out, there’s noth­ing mys­te­ri­ous about sav­ing for re­tire­ment. If you can de­ter­mine when you started sav­ing for re­tire­ment, when you’re hop­ing to re­tire and how much money you’ll need once you’ve re­tired, you can work out ex­actly how much to save each month for a com­fort­able re­tire­ment.

Hope­fully you can an­swer ques­tion one and two, but an­swer­ing the third ques­tion might be a lit­tle more com­pli­cated. “In de­ter­min­ing how much you will live off each month, your cur­rent monthly bud­get is a good place to start. You can see what your ex­penses are for each month and re­move the ones that you won’t have in re­tire­ment, such as bond pay­ments and chil­dren’s ed­u­ca­tion. Most aim for 70% of their fi­nal salary as an in­come in re­tire­ment. This gives you some idea as you set a goal of how much you would like to re­tire on,” he ad­vises.

This cal­cu­la­tion should get you to how much you’ll need when you re­tire, but it still doesn’t an­swer how much you should be sav­ing right now. Michele On­g­ley, head of in­sti­tu­tional busi­ness devel­op­ment at 10X In­vest­ments, says in­creases in an­nual in­come, ad­di­tional in­come like bonuses, your ca­reer and whether you are mar­ried or not or the num­ber of chil­dren you have all af­fect how much you can real­is­ti­cally

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