By Emily Lorsch
Consistently saving a small percentage of your salary is a simple way to ensure you’re prepared for retirement.
As a rule of thumb, most financial advisors suggest you save 10% to 15% of your earnings.
Here’s a case study assuming you start with no savings, plan to retire at 65 and have investments that earn 6% annually.
If you want to retire with $2 million, you’ll need to invest about 24% of a salary of $50,000 starting in your 20s. Waiting until you’re older will require a larger portion of your pay. If you wait until your 30s, then that number jumps to 34% of your salary. This does not account for variables such as a possible pay increase or decrease, employer match, inflation or any other of life’s curveballs.
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This article originally appeared here and was republished with permission.
