{"id":287,"date":"2016-10-12T03:00:00","date_gmt":"2016-10-12T03:00:00","guid":{"rendered":"https:\/\/www.foreo.com\/mysa\/?p=287"},"modified":"2022-03-01T14:29:49","modified_gmt":"2022-03-01T14:29:49","slug":"how-to-start-saving-for-retirement-in-your-20s","status":"publish","type":"post","link":"https:\/\/www.foreo.com\/mysa\/how-to-start-saving-for-retirement-in-your-20s\/","title":{"rendered":"How to Start Saving for Retirement in Your 20s"},"content":{"rendered":"
The ultimate cheat sheet for millennials.<\/p>\n
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As millennial twenty-somethings, saving for retirement is fairly overwhelming. First, there are so many options to choose from, and second, our paycheck seems to disappear into rent, loans, and other bills almost as soon as it deposits. So how exactly do we save for the future, when retirement seems so far away? Don\u2019t be confused. We\u2019ve got you covered with the basics. This is how to start saving for retirement in your 20s.<\/p>\n
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First things first, figure out how much you need to save. Most financial experts say to put away between 10% and 20% of your salary each month. But it\u2019s also helpful to estimate the total amount you\u2019ll need to accumulate before you\u2019re ready to retire. Start by asking yourself these questions.<\/p>\n
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It might be difficult to imagine what your life will be like in 50 years, so take these things into account. Do you plan on being married and\/or having children<\/a>? Do you hope to purchase a large house? Or do you envision spending your retirement years somewhere cheaper, like a tiny house in a rural area? The type of lifestyle you want will greatly affect how much you need.<\/p>\n <\/p>\n This too will help you calculate how much you\u2019ll need before you throw that retirement party. If you plan on retiring early, you may need to up the percentage you save. Still need help? Check out the retirement calculators below to estimate a more exact amount.<\/p>\n <\/p>\n Financial advisors say to expect that as a retiree you\u2019ll spend a total of 80% of your annual salary per year of retirement. You can subtract 20% of your salary because hopefully by the time you\u2019re retired you\u2019ve paid off a house and won\u2019t have mortgage expenses. To figure out the total number you\u2019ll want to save, do this math:<\/p>\n <\/p>\nHow many years will you spend working?<\/strong><\/h3>\n
Use these helpful retirement calculators <\/strong><\/h3>\n
(Current salary x 0.80) x number of years retired = how much you\u2019ll need to save<\/strong><\/h3>\n