How much should one aim to save for retirement, and what are the recommended savings rate and time frame?
Curious about retirement planning
The amount that one should aim to save for retirement depends on several factors, such as one's desired lifestyle, expected expenses in retirement, and retirement goals. There is no onesizefitsall answer to this question, as each person's circumstances are unique. However, financial experts generally recommend saving enough to replace 7080% of preretirement income in retirement.
The recommended savings rate and time frame also depend on various factors, such as one's age, income, and retirement goals. As a general rule, it is recommended to start saving for retirement as early as possible, ideally in one's 20s or 30s, to take advantage of compound interest and achieve longterm growth. A common recommendation is to save at least 15% of one's income for retirement, although this can vary based on individual circumstances. It is also important to regularly reassess and adjust one's retirement savings plan as needed.