Experts generally say you will need 60 percent to 80 percent of your current income each year to get you through retirement. For most of us, the combination of Social Security benefits and employer-provided retirement benefits won’t total that much. That’s where the third leg of the retirement security stool—personal savings—comes in. It’s never too early—or too late—to begin saving for retirement. A wealth of online resources can help you figure out how much you need to save and give you tips about how to do it.
Online Calculators and Worksheets
- The American Savings Education Council (ASEC) offers a Ballpark Estimate worksheet to use interactively or print out. It’s also available in Spanish. Other tools from ASEC’s Choose to Save program include a range of additional financial calculators on saving, taxes, debt and more.
- Use the U.S. Treasury Department’s savings bond calculators to determine how much your bonds are worth, set up a savings plan and figure how your bonds will grow.
Tips on How to Save
- How Do I Get There From Here? from the American Savings Education Council takes you through options for do-it-yourself retirement planning but also gives you tips for selecting an investment professional.
- Six Steps to Six-Figure Savings, from the Consumer Federation of America, shows that small savings over a long period can make a big difference. Over 40 years, for example, $25 a week earning 5 percent compound interest adds up to more than $166,000!
- 66 Ways to Save Money, also from the Consumer Federation of America, gives money-saving tips on everything from car-buying to home heating and funeral arrangements.
- Women and Retirement Savings, also from the PWBA, targets the special needs of women, whose lifetime earnings tend to be lower than those of men because of family-related career interruptions. Only 47 percent of women have pension plans.
- Definitions of Retirement and Savings Terms—Don’t know an annuity from a thrift plan? Use this glossary from the American Savings Education Council.
Other Resources
