Build your retirement savingsA few general guidelines can help you build your retirement savings. The percentages below assume you're just starting to save and have a high-confidence goal of maintaining your lifestyle over 30 years of retirement.
If you are starting to save in your 20s
Save between 10 percent and 15 percent of your income for retirement.
Resist the temptation to cut back on retirement savings.
Remember that even small contributions to your retirement plan can grow substantially over time.
If you are starting to save in your 30s
Save between 15 percent and 25 percent of your income for retirement.
Track your spending to find ways of cutting back.
Put as much of your bonus as possible into retirement savings.
Continue to fund your retirement accounts even while saving for children's college expenses and paying off your mortgage.
If you are starting to save in your early 40s
Save between 25 percent and 35 percent of your income for retirement.
Max out your 401(k), SEP-IRA, or other business retirement plan.
Consider less expensive public universities for your children.
If you are starting to save in your mid-40s and older
Save more than 35 percent of your income for retirement.
Max out all tax-deferred retirement account options.
Contribute to a traditional or Roth IRA, if eligible, and consider a deferred variable annuity.
Consider postponing retirement for a few years or working part-time to supplement your retirement income.
Variable annuities and certain other annuities are sold by prospectus only. Before purchasing an annuity, you should carefully read the prospectus and consider all of the risks, charges, and expenses associated with the annuity and its investment options. You can request a prospectus by calling 888-311-4887.
