Investments and Saving Enough for Retirement

Kimberly Watson, Editor in Chief
September 18, 2012 /

New guidelines from Fidelity: saving for retirement are reportedly answering some questions regarding, planning for that day by some easy to follow ground rules. One factor is that you need to save a minimum of eight times your annual salary. This would ensure an income to meet your basic needs in the retirement period.

The various contributing factors were based on hypothetical situations, with the emphasis placed on the fact that this is a recommended guideline from Fidelity: saving for retirement. However, for some retirees this figure will not be sufficient for their requirements. A further aspect related to working for a company that provides a 402(K) with a match, it should be accepted. If not, money is being discarded, which is part of your compensation annually.

A surprise statistic related to Fidelity: saving for retirement revealed that during the recession, the 401(K) average savings rate remained constant at eight percent on a national basis. Another recommendation though, was that if viable ten to fifteen percent of your annual income should be directed to the 401(K) plan. This should not be neglected as though many people plan to work into their seventies, ill health or other adversities prevent this. The power of Fidelity: saving for retirement is emphasized when accounts are seen to be growing and which creates further incentive.

Fidelity: saving for retirement recommends that for a retiree to reach the goal of eight times salary by age sixty seven, at thirty five about one times their salary should be saved, three times at age forty five and five times at age fifty five. Another opinion is that although the eight times salary is reasonable; most retirees would be better satisfied with savings of about ten or fifteen times their annual salary.

Savings patterns will vary with the individual because of their financial circumstances and responsibilities. If a retiree will in addition receive Social Security or a pension, then they can save less on their 401(K) than others without these benefits. Should a retiree be adamant about not changing their lifestyle, then they should consider the various aspects related to Fidelity: saving for retirement and plan accordingly.

Another consideration is life expectancy when related to Fidelity: saving for retirement and the calculation of a determined and adequate amount. However, it is not an easy matter for a worker of forty to make decisions related to his life at seventy. If health is an issue now, then providing your interests and ambitions are not extravagant, saving eight times your annual salary could be regarded as reasonable.


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