So I am not a sales person and try not to be pushy, but I have to share with you some of the results of the recent 2010 Retirement Confidence Survey. The survey shows that 44% of all workers in the US just took a guess (is this a random guess?) at how much money they needed to save for retirement! The next statistic is even more concerning. Almost 30% of Households with annual income of $75,000 or greater thought they only needed $500,000 or less for retirement!
There is a rule of thumb that says you can withdraw about 4-5% of your portfolio per year throughout retirement. This would mean that at 5% the household would only be drawing $25,000 ($500,000 * 5%) a year from their portfolio! This would be a HUGE decrease in standard of living!
If you don’t know how much you should have saved, find a planner at www.napfa.org
Source: http://www.ebri.org/pdf/briefspdf/EBRI_IB_03-2010_No340_RCS.pdf (check out page 23)