How Much You Should Have in Your Retirement Fund at Every Age
If you’re counting on Social Security to fund your retirement, you might want to think again. According to MarketWatch, the two funds that pay Social Security’s benefits — the Old-Age and Survivors Insurance and the Disability Insurance trust funds — will run out of money in 2035 if Congress does nothing to fix the program. While Social Security benefits won’t disappear if this happens, the funds will come only from taxes and therefore payouts will be lower. With less help from the government, it’s important to start saving now to protect yourself and your loved ones during your golden years.
There are numerous studies and theories about how much you should have saved for retirement, emergencies, necessities and other expenditures. For example, studies by Fidelity and T. Rowe Price show the retirement savings benchmarks for where you need to be, starting at age 25. Both studies stress the need to save early, maintain a significant level of contributions throughout life and maintain an age-appropriate allocation to equities throughout.
Don’t wait for retirement to sneak up on you. Here are some expert tips for getting your retirement fund in order before you leave the working world behind and how to progressively grow your emergency fund.
Where To Put Your Savings in Your 50s
This is also a time when you should continue to keep your emergency fund at three to 12 months of your salary. Periodically revisit your budget to ensure you’re meeting the costs of necessary expenses, and not overspending and going into debt.
“Consider re-balancing your investments to reflect your current needs,” said Judith Corprew, Executive Vice President at Patriot Bank, N.A., based in Stamford, Connecticut. “If you already have substantial savings, you can shift money toward more conservative investments like bonds and indexed mutual funds.”
Additionally, individuals in their 50s often find themselves trapped in the sandwich role, giving money to both adult children and aging parents. In fact, 12% of American adults are providing financial support to both kids and parents, according to Pew Research data. If you want to keep your retirement fund healthy, resist the urge to give to others before you take care of yourself and your spouse.