Figuring out how much to save for retirement is one of the most important financial decisions you’ll ever make.
Yet as Americans, it turns out we aren’t very good at putting enough money away for the golden years. According to a recent 4,854-respondent Merrill Lynch/Age Wave study, only 27 percent of pre-retirees who are 50 or older feel financially prepared to fund their a retirement that lasts even 10 years.
Moreover, 81 percent of people don’t know how much money they’ll need to fund their retirement.
So if you’re one of the four out of five people who doesn’t know how much to save for retirement, keep reading and you’ll have a much better idea.
Why you should be saving more money than you might think. “Remember that retirement can last 20, 30 or more years. Over that time, many things may change, such as the economy, taxes, inflation, family, friends and one’s own health and financial situation,” says Catherine Collinson, president of Transamerica Center for Retirement Studies.