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Step Two
Sources of retirement income
Starting early
Determine your savings goal
Most of your retirement income will come from you
Social Security covers only about 34%* of the average retiree’s income, and fewer employers offer traditional pension plans. In reality, the majority of your retirement income will likely come from either your own savings or from part-time employment after retirement. If your goal is to live comfortably and work less in retirement, you need to start saving today.
START PLANNING TODAY
To find out what you can expect to receive from Social Security when you retire, go to s s a . go v or call 800 - 772 - 1213 to request an estimate.
You may need more retirement income than you think
The income you will need in retirement depends greatly on your individual circumstances, including factors such as your age, health, income, investments, and savings.
Based on today’s average life expectancy, you may need retirement income for 20 years or more after your regular paychecks stop. As a result, you need to take steps now to ensure you have enough money to live comfortably in your retirement years.
How much to contribute?
Consider contributing at least 10% of pay. If that seems too steep, consider starting at 6% then raising your contribution 2% each year. But don’t wait too long. The sooner you start saving more, the easier reaching your goal can be.
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