Retirement

How much should you save for retirement?

IRA maximum is $5,000 per year until you are 50 years old. Is that enough or too much? The 401(k) limit until age 50 is $14,500. You can find out what amount  you need to save by using some calculators online. There are a variety out there that will tell you what you need to save per year or what you need in total to attain your goal.

Here are some of my favorite ones:

AARP Calculator - Tells you what percentage of your income you should contribute to retire by a certain age. Also tells you the age you will retire if you keep contributing the percentage that you are currently contributing

FINRA Calculator - Shows you a schedule of exactly how much you should contribute each year. Every year, the contribution grows so that you are not overwhelmed by a large amount from the start.

CNN Money Calculator - Tells you the likelihood that you will attain your goal for retirement with a percentage. For example, "We believe there is an 80% chance, you will attain your retirement goal."


Also, you might find it helpful to see how much social security you will be getting in the future by plugging in your social security number and other info on the official SS website: Social Security Online Services. You have to have enough working credits to get the personal estimates at this website, which means that you have to have 10 years of working experience.

If you can't get your personal estimates through the website, you can estimate your future social security through the Social Security Online Services - Quick Calculator.