How much of your salary you've already saved | ||||||
---|---|---|---|---|---|---|
0 | 0.5x | 1x | 2x | 2.5x | 3x | |
AGE | Percentage of your annual salary you should be saving | |||||
30 | 11% | 8% | 5% | 0% | 0% | 0% |
35 | 14 | 11 | 8 | 3 | 0 | 0 |
40 | 19 | 15 | 12 | 6 | 3 | 0 |
45 | 26 | 22 | 19 | 12 | 8 | 5 |
50 | 38 | 34 | 30 | 21 | 17 | 13 |
55 | 64 | 58 | 52 | 40 | 34 | 28 |
Notes | Assumes 3% inflation rate, 7% rate of return, retirement age of 65, and 70% of pre-retirement income is replaced. Portfolio consists of 60% stocks, 30% bonds, and 10% cash. | |||||
Source | T. Rowe Price. | |||||
Published: | BusinessWeek, 29 September 2003, page 133. |