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Affluent lack retirement savings

By Judy Martel · Bankrate.com
Wednesday, November 14, 2012
Posted: 6 am ET

If you are planning to work longer because you haven't saved enough for retirement, you'll have plenty of company. According to a survey from Merrill Edge, 56 percent of the mass affluent are in the same boat, a 19 percent increase from a year ago.

Bank of America's Merrill Edge surveyed 1,000 individuals with between $50,000 and $250,000 in investable assets and found that 52 percent of them have saved less than $250,000 for retirement.

As a guideline, many financial experts advise saving at least eight times your present salary for retirement. That means if your salary is $50,000 a year, you'll need a minimum of $400,000.

Of course, guidelines don't give you the whole picture. The amount you'll require for retirement will depend on how you want to live, how much debt you're still carrying, any future expenses such as college financing for a child and the state of your health. But at the end of the day, you can't factor in everything. It's better to have the comfort of a financial cushion for unexpected events or costs, rather than the fear that you won't have enough.

This Bankrate calculator can help give you a starting point for retirement planning.

Are you planning to work longer, or will you have enough to retire when you want?

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