How much to save for a secure retirement

Munnell, Alicia Haydock, Francesca Golub-Sass, and Anthony Webb. “How much to save for a secure retirement”. Issue in Brief 11-13, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2011. http://hdl.handle.net/2345/bc-ir:104194.
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Abstract

The brief's key findings are: (1) Recent estimates suggest that people need about 80 percent of their pre-retirement income in retirement. (2) The saving rate needed to hit this target depends on earnings, saving start age, retirement age, and asset returns. (2a) The average earner who starts saving at 35 and retires at 67 needs to save 18 percent each year, assuming a 4-percent return. (2b) The comparable rates for low and high earners are 12 percent and 22 percent, respectively. (3) Starting early and working longer are more powerful levers for gaining a secure retirement than earning higher returns.

Title
How much to save for a secure retirement
Author
Munnell, Alicia Haydock
Golub-Sass, Francesca
Webb, Anthony
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
November 2011
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
11-13
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104194
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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