Updated Date 2022, Oct 18

 

By Bhawna

3 Ways to Calculate How Much to Save for Retirement | The Motley Fool

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Whether you just started working or you are about to be retired means about to be done, you can still save for retirement. And you should save for retirement before it's too late. When planning for retirement, the good thing is that the earlier you begin saving, the better it is. But even if you started late or you are yet to start, you should pay heed to the fact that you are not alone. There are obvious steps by which you can increase your retirement savings consistently. Most of us should start saving 15% of our income if we wish to retire by age 62. Retirement planning is a multilevel process that evolves over time. To have a comfortable and fun retirement, you need to build the financial cushion that will fund it all. Retirement planning starts with thinking about your retirement goals and how much time would you take to meet them. Then you need to take a look at the types of retirement accounts that can help you to raise the money to fund your future. And as you save money, you are required to invest it to see it growing. So, here are some easy tips by which you can help increase your savings and then pursue the retirement that you are planning and dreaming for:

Focus on beginning today

How much money should I save each year for retirement? | Fidelity

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You have to start now. Especially if you are just beginning to put money away for retirement, start saving as much as you can now. The earlier you start, the better it is. Start today even if it is a little bit. Then saving will become a habit. The instinct to save will grow as you save money. You will start feeling good when you see that your account balance is growing. The concept of compound interest also comes when we talk about savings. The investor who starts 10 years earlier would have more at the time of retirement. It is simple.

Understand your time horizon

Your current age and expected retirement age are the grounds on which you need to create an effective retirement strategy. The longer the time from today to retirement, the higher the risk that your portfolio can stand. The main word is “long”, meaning at least more than 10 years.

Rein in spending

Retirement Planning: How Do I Reach My Retirement Goal? | GOBankingRates

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Take a look at your budget. You can negotiate a lower amount on your car insurance. See where you can reduce spending. This will help you to save more and invest also. You can keep a cash flow calculator that can help you keep a check on where your money is going.

Set a retirement goal