"As much as you can" is the standard advice. Many financial planners recommend that you save 10% to 15% of your income for retirement, starting in your 20s. If your already in your 30’s consider saving 15%-25% and if your in your 40’s 25%-35%.
It's a good idea to establish a savings target - one that tells you roughly how much you should set aside over time to meet your retirement goals. Your savings target should be based upon an estimate of your future spending. To accurately predict this it is easiest to start by recording your actual spending now. Once you have an actual budget you can revise it to take out any costs that you won’t have in future and to add in any new expenses that you think will arrive for example, medical bills, membership of retirement clubs etc.
Your goal will depend on the type of lifestyle you have as well as the sources of income. Two big factors weigh heavily on your retirement savings needs: how many years you're going to spend in retirement and how much you're going to need to withdraw each year. Plan to spend at least 30 years in retirement—longer if you think you'll retire early. Medical advances are consistently extending the average lifespan.
So if you currently have living expenses of $20000 per year you would need $600000.
Figure out how much you should accumulate and how much you must set aside in the meantime to reach that target. Be sure to update the calculation each year, so that you can see if you're on track.
Inside The Singles Sisterhood membership we have the Investment and Pension Planning for Singles eCourse that can help you figure out what your retirement goals are and how to work toward them.
Members of the Sisterhood can get started with this eCourse right now and build your way to a comfortable retirement.
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