Thursday, October 20, 2005

How Much for Retirement?

Choose to Save has this interactive calculator for determining how much you would need to save for retirement. It's only a ballpark estimate, and is sensitive to model inputs, but does exactly what it suggests - give you a ballpark estimate. If you are saving less than this for retirement, time to cut out of those fancy dinners and start ploughing more in. If you are single, I would say you need to exceed those estimates - remember, if and when you do have kids, you will have to put aside substantial amounts of money for their college education (currently, a decent 4-year program would set you back as much as $100,000 and it is likely that tuition inflation would be greater than overall monetary inflation)

1 comment:

krish said...

how about something like this for
Indians. People who earn less than Rs 5k a month.(75% Of india)

If only our social structure of children being the social security for parents, things look very bleak for old people in India.
Staying with parents may not be a lot of fun,let say you sacrifice your retirement plan to pay for your parents old age benifits. The insecurity of your children not supporting you exists.