May 18, 2006
Will you have 10x your salary saved when you retire?
Phew, what a crazy day at work. After I got home, I relaxed by watching Frontline on PBS (in HD). The episode I watched was on retiring in America - wow, it’s a pretty scary story. I never knew that 401k was a small invention created specifically to help xerox’s executives.
Here’s an interesting thought on what you need to retire:
FRONTLINE: can you afford to retire?: what you need to know | PBS
What do experts say should be the combined employee/employer amount put into a 401(k) each year?
Fifteen to 18 percent of salary, every year, for 30 years is the recommendation from most experts. Most advise having roughly ten times annual pay accumulated in a 401(k)-style plan by retirement time.
Wow that’s a lot of money. Be sure to watch the video, or see it on broadcast. As is typical of Frontline, there are definitely some interesting stories. It was pretty eye-openning. The last sentence of the show is shocking, but not very surprising.
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