How do I know I am saving enough?

Recommended savings by age

Financial advisors are often asked for a “rule of thumb” to determine if you are on track in your savings. Some online retirement calculators can be scary in their estimates for how much you need to have saved.  The good news is a thoughtful financial plan can place you on the right trajectory, eliminate unnecessary worry, and free you to live while your money works behind the scenes. 

 Everyone’s situation is different, but here are some general guidelines for savings goals to give you something to aim for: 

·       By age 30: You need the equivalent of your current annual salary saved. For example, if you earn $50,000, you should have $50,000 saved for retirement by the time you’re 30.

·       By age 40: You need three times your annual salary saved. If you earn $50,000, you should have $150,000 by the time you’re 40.

·       By age 50: Have six times your annual salary saved.

·       By age 60: Have eight times your annual salary saved.

·       By age 67: Have ten times your annual salary saved.

 To see if you are on track, it’s best to talk to a financial advisor to evaluate your specific goals.  If you’re lagging behind a little, don’t worry, there are ways to catch up that we can discuss.  We can be reached at 716-445-7465 or email info@buffalofirstllc.com.