The question that’s on everyone’s mind: how much should I be saving for retirement?

The reality is, there is no one-size-fits all answer. Saving for retirement is a very personal and individual matter. Consider the lifestyle you have, want to have and also how that will change during your retirement years. There’s no set formula that applies to everyone. Take a look at our hypothetical examples below to give you a better idea about retirement savings.

John makes $60,000 a year and starts saving at 30 years old. At a 5% rate, he’d be putting away $3,000 every year. If he retires at 65, he’d have a total savings of $105,000. Now take that amount and divide it by the years he’ll expect to live after he retires, let’s say another 20 years.That gives him an allowance of $5,250 per year.

Some people prefer to think of their savings in percentages like the example above. If thinking about percentages doesn’t work for you, some pose the question in this way: how much do I need, in multiples of annual income, to be sufficiently set up for retirement? Example: If John decides saving 8 times his salary of $60,000/year will be the best plan for him, he will have to save enough to equal $480,000 for his retirement savings.

These two different scenarios are just hypothetical examples of different methods of saving. Deciding the best method of saving and how much to save is a very individual matter.

Every extra dollar that goes into your retirement account will end up being much more than a dollar. Think of where you want to be when it comes to retirement and make choices now to make it happen. It may not always be possible to save higher percentages that month or even that year. But saving some is a great start to setting up a retirement. A financial architect at Miramontes Capital can help you take the stress out of planning and figure out what will work best for your individual situation.


If you’re interested in reading more tips on preparing for retirement, plus real stories of retirees on what they wish they would have done differently, we’ve written a book just for YOU.

And the best part – since you’re on my email list, you can get it completely FREE (normally it’s $17.95 on Amazon)!!

Click here to get your free copy today.

In this book you’ll find valuable information on: – Adjusting to retirement on a personal level
– Protecting your assets
– Pensions, IRAs, and 401(k)s

– Mutual funds and annuities
– Protecting your principal
– Real life examples to put this all into perspective for you – And so much more

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Interested in more information? We’ve created a free workshop where you can come in and meet us, spend time getting to know our team, and get all of your retirement questions answered. There are only 20 seats available for each workshop, and they fill up fast! Once they’re full, you will have to wait until the next one, so reserve your spot now by clicking here.

You should leave this workshop feeling confident in what your next steps should be, whether you’re 2 years away from retiring or 6 months.

This is your chance to get your questions answered – once and for all!

Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.