When do I need to start planning for my retirement?
I am 29 years old and work for a state agency. They currently require that we contribute 8% of our paycheck to our retirement fund. I am wondering if that is sufficient for my age. It seems like it is actually a pretty significant amount and I would hesitate to commit more, but I am curious if professionals believe it is enough.… show moreshow less
A simple way to look at a good strategy is to put 20% of your income to retirement, 50% to necessities, and 30% to your wants. You state may provide you projections of what your pension might be at retirement. Think about what it will pay and see if you can live off of that.
I'm not a financial planner, but I am a tax accountant. In your retirement, you can work your way into how much money you need backwards. Whatever you need to live on right now, in order to maintain the same lifestyle and retirement, you would have to make the same amount. 8% doesn't sound like a lot of money being save for retirement. You should probably talk to a financial planner that can help you. Most will give you a free consultation Craig W. Smalley, E.A. - Admitted To Practice Before The Internal Revenue Service
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