Is saving 70% of your pre-retirement income even possible?
POSTED: Monday, June 10, 2013 - 6:49pm
UPDATED: Tuesday, June 18, 2013 - 4:57pm
Tyler, TX — It's hard enough to save money as it is.
Reports say, Americans should be putting more money into retirement.
More than half of their pre-retirement income just to live comfortably.
Basically what they're saying is to take a look at your salary you'll need throw 70% percent of it in the bank, over time of course.
"Trying to save 70% of your income for anybody is unrealistic," says Glen Smith, Financial Advisor, Edward Jones.
Reports say, Americans will need to save about 70% of their pre-retirement income, and lower income earners will need to save more than 90%.
Financial Advisor, Glen Smith recommends starting off at 10%. He tells us, now that number is a little more realistic.
"If you start out a little bit later you may have to put more money back into your retirement, if you start out a little bit sooner then it sure helps out but it's never too late to start," says Glen Smith.
Experts say, people need to look into your employer's retirement plan.
"Hopefully your employer has a matching plan on top of that which would help your money grow for you a little quicker and the pre-tax money helps out also, if you don't have an employer that has that you can look at an IRA an individual retirement account," says Glen Smith.
Experts say, the biggest mistakes people can make is pulling money out from their retirement account.