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Bankrate's 2008 Retirement Guide
The road ahead
There's no perfect plan for everyone but keeping with solid fundamentals is a wise path for most to follow.
The road ahead
Is your retirement on track?
Page | 1 | 2 |


Of course, if your salary increases in the future, you'll need to make adjustments. The numbers aren't foolproof, but these rates have a 90 percent chance of success, say the authors. They ran each combination of age, income level and savings rates through 2,000 market scenarios in "Monte Carlo simulations" -- altogether 72 million simulations -- to get these numbers. The portfolios they used in their research resembled those of target-date funds, which become increasingly conservative as retirement draws near.

Notice that the savings rate trends upward as you get older. That's why it's easier to meet your retirement goals if you get an early start. But as the chart shows, it's never too late to get started.

National savings rates
Age Income Savings rate Deduction for each $10,000
25 $20,000 5.8 percent 1.6 percent
25 $40,000 8.2 percent 0.78 percent
25 $60,000 10 percent 0.55 percent
25 $80,000 11.2 percent 0.4 percent
30 $20,000 7 percent 1.65 percent
30 $40,000 10 percent 0.79 percent
30 $60,000 11.8 percent 0.54 percent
30 $80,000 13.6 percent 0.42 percent
35 $20,000 8.6 percent 1.75 percent
35 $40,000 12.2 percent 0.86 percent
35 $60,000 14.6 percent 0.55 percent
35 $80,000 16.4 percent 0.43 percent
35 $100,000 17.6 percent 0.34 percent
40 $20,000 10.2 percent 1.67 percent
40 $40,000 14.8 percent 0.86 percent
40 $60,000 17.6 percent 0.57 percent
40 $80,000 19.8 percent 0.42 percent
40 $100,000 21.4 percent 0.35 percent
45 $20,000 12.4 percent 1.76 percent
45 $40,000 18 percent 0.9 percent
45 $60,000 21.4 percent 0.59 percent
45 $80,000 24 percent 0.45 percent
45 $100,000 26.2 percent 0.37 percent
45 $120,000 28.2 percent 0.31 percent
50 $20,000 15 percent 1.87 percent
50 $40,000 22 percent 0.97 percent
50 $60,000 26.2 percent 0.64 percent
50 $80,000 29.8 percent 0.48 percent
50 $100,000 32.2 percent 0.39 percent
50 $120,000 35 percent 0.33 percent
55 $20,000 18.6 percent 2.11 percent
55 $40,000 27.2 percent 1.04 percent
55 $60,000 32.6 percent 0.71 percent
55 $80,000 36.6 percent 0.53 percent
55 $100,000 40.2 percent 0.43 percent
55 $120,000 43.6 percent 0.36 percent
60 $20,000 23.8 percent 2.39 percent
60 $40,000 34.4 percent 1.23 percent
60 $60,000 41.2 percent 0.81 percent
60 $80,000 46.8 percent 0.61 percent
60 $100,000 51.4 percent 0.5 percent
60 $120,000 55.4 percent 0.41 percent

-- Posted: Nov. 10, 2008
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