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Saving For Retirement
(Courtesy Albion Management Group)
What percentage of your current income must you save if you want to retire on 75% of your current income?
Savings Rate As Percent Of Income
Annual Savings Amount
Assume No Inflation
Assume 9% Annual Interest Rate
Assume 7% Rate of Return in Retirement
Assume Retirement Age 65
- If you begin saving at age 25, you must save 2.4% of your current income.
- If you begin saving at age 35, you must save 5.8% of your current income.
- If you begin saving at age 45, you must save 15.5% of your current income.
- If you begin saving at age 55, you must save 52.3% of your current income.
What percentage of your current income must you save if you want to retire on 75% of your current income?
Savings Rate As Percent Of Income
Annual Savings Amount
Assume 3.5% Inflation
Assume 9% Annual Interest Rate
Assume 7% Rate of Return in Retirement
Assume Retirement Age 65
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