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Retirement: What Percentage of Salary to Save?

by Peter J. Creedon

The numbers are much worse for those who start late. If you waited until age 45 to start saving, you would need to put aside an unrealistic 27% of your salary for retirement. This would pretty much force you to work until age 70 so you could save a more realistic 10% annually. “Time can be your greatest friend or worst partner, so use it wisely. A 25-year-old who contributes $5,000 to a retirement account, will not touch the money for 43 years and gets an average return of 8% should have approximately $1.67 million,” says Peter J. Creedon, CFP®, CEO of Crystal Book Advisors, New York, N.Y. “If you wait until age 35 and contribute the same amount and get the same return, you would have a little under $730,00

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