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Savings rates for a secure retirement

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The price of procrastination
In the table below are the recommended savings rates for individuals based on age, income level and accumulated savings.

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For instance, if you're 50 years old, earning $60,000 and have saved zilch so far, you need to start setting aside 26.2 percent of your pay.

Ouch -- that's what happens when you procrastinate! But if you have $200,000 stockpiled in your retirement plan, then your savings rate is a manageable 13.4 percent (0.64 percent x 20 = 12.8 percent. 26.2 percent - 12.8 percent = 13.4 percent). That's much better!

Find your age and income level to determine your appropriate savings rate. For each $10,000 you have in accumulated savings, subtract the number in the fourth column from the savings rate.


New national savings rates
Age Income Savings rate Deduction for each $10,000
25 $20,000 5.8% 1.6%
25 $40,000 8.2 0.78
25 $60,000 10.0 0.55
25 $80,000 11.2 0.40
30 $20,000 7.0 1.65
30 $40,000 10.0 0.79
30 $60,000 11.8 0.54
30 $80,000 13.6 0.42
35 $20,000 8.6 1.75
35 $40,000 12.2 0.86
35 $60,000 14.6 0.55
35 $80,000 16.4 0.43
35 $100,000 17.6 0.34
40 $20,000 10.2 1.67
40 $40,000 14.8 0.86
40 $60,000 17.6 0.57
40 $80,000 19.8 0.42
40 $100,000 21.4 0.35
45 $20,000 12.4 1.76
45 $40,000 18.0 0.90
45 $60,000 21.4 0.59
45 $80,000 24.0 0.45
45 $100,000 26.2 0.37
45 $120,000 28.2 0.31
50 $20,000 15.0 1.87
50 $40,000 22.0 0.97
50 $60,000 26.2 0.64
50 $80,000 29.8 0.48
50 $100,000 32.2 0.39
50 $120,000 35.0 0.33
55 $20,000 18.6 2.11
55 $40,000 27.2 1.04
55 $60,000 32.6 0.71
55 $80,000 36.6 0.53
55 $100,000 40.2 0.43
55 $120,000 43.6 0.36
60 $20,000 23.8 2.39
60 $40,000 34.4 1.23
60 $60,000 41.2 0.81
60 $80,000 46.8 0.61
60 $100,000 51.4 0.50
60 $120,000 55.4 0.41
 
 
Next: "Odds are good for success"
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