Saving for Retirement: What Do You Know?
Anthony, age 43, and Tonya, age 36, recently became parents. They want to plan for the future but aren't sure how best to start. They are worried about the burden of saving for their own retirement and their son's college education at the same time. Anthony and Tonya own a townhouse and know they have to keep up with their monthly house payments and bills. They also want to be able to take family vacations. They hope to start saving, but it seems like a lot to do.
Learning about financial planning can make a difference in how much money Anthony and Tonya save for retirement.
It's not too soon for Anthony and Tonya to start thinking about saving. Although they're still young, they should try to set aside money for retirement now.
Although everyone's situation is different, what portion of their annual pre-retirement income (for example, their total income from last year's tax return) might Anthony and Tonya need each year to enjoy the same standard of living after they retire as they had when working?
a. About 45 percent
b. About 60 percent
c. About 70 percent or more
Should Anthony and Tonya think about "equity" in their home as a good retirement investment?
c. Yes and no
Publication Date: September 2009
Page Last Updated: September 23, 2013