A Super-Easy Way to Figure Out How Much You Need to Save
Now that you know how much will be coming in from Social Security and any retirement plans, you’re ready to figure out how much you need to save and invest each year to retire, using the worksheet below. This worksheet gives you two options. One assumes that you’ll own your house by retirement, so you’ll only need 50 percent of your current annual income. The other assumes that you may still be paying a mortgage and will need 70 percent of your current annual income.
1. Present Annual Salary $___________ $_________
2. Times Percent at Age 65 _______.50_________.70
3. .Gross Amount Required _______________________
4. Less Social Security1 _______________________
5. Less Pension (if any) ...