Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Retirement Investing

Retirement Planning in Your 20s: A Must Do (Fox Business)

Your article was successfully shared with the contacts you provided.

Gen Y, take heed: More than half of all workers report they have less than $25,000 in savings, according to a survey by the Employee Benefit Research Institute. As baby boomers approach retirement, a good number are worried about their financial future — a problem that, in many cases, could have been avoided if they’d simply started saving at a young age. So how much should you save? The Center for Retirement Research at Boston College shows what percentage young workers should save starting at age 25, assuming they’re a lower-income earner with a 4% rate of return. To retire at age 62, the worker should save 18% of their income; if they’re happy to work until age 70, they only need to save 3%.