Salent of salary to save $ 1 million for retirement when you start in the 20s, 30, 40s

When it comes to financial goals, it can be a strong motivator to show a nice round number – such as $ 1 million in pension savings.

While the amount you actually need for retirement depends on your lifestyle, your income and your personal circumstances, including where you live, 1 million US dollar remains a popular yardstick for pension.

The achievement of this goal not only depends on saving, but also on how much of your income you save every year.

While the saving of at least 10% of their income for retirement is often recommended by financial planners – especially for low earners – David Blanchett, the certified financial planner, recently compared to CNBC, that it is probably the right place for the start, “an overall parquot of 15%”.

With a saving rate of 15%, even those who earn well below the US average income of $ 80,610 can still build up 1 million US dollar of $ 1 million up to the age of 65. The earlier you start, the easier it is to achieve this goal.

In the following data, the annual content that is required is to save 1 million US dollars for retirement, assuming a retirement age of 65, a consistent savings rate of 15% and different returns in accordance with CNBC calculations.

If you start at the age of 25:

• 4% return: $ 67,684
• 6% return: $ 40.171
• 8% return: $ 22.916

If you start at the age of 30:

• 4% return: $ 87,553
• 6% return: $ 56.152
• 8% return: $ 34.875

If you start at the age of 35:

• 4% return: $ 115.266
• 6% return: $ 79,640
• 8% return: $ 53,678

If you start at the age of 40:

• 4% return: $ 165,886
• 6% return: $ 124,783
• 8% return: $ 92.310

It is worth noting that many savers bring in their career less early when their income is lower and then catch up later when their income increases.

However, these numbers underline the advantage of an early beginning, since interest can lead to exponential growth the longer your money is invested. Waiting up to your 40s to save either requires a significantly higher content or a higher return to achieve the same goal of $ 1 million.

If you are not sure whether your retirement provision is where you have to be, widespread benchmarks from Fidelity can help you measure your progress. While these age-based milestones offer a helpful rule of thumb, their exact savings target can vary on their lifestyle and financial goals.

• At 30 years: Let the equivalent of your annual content saved
• At 35 years: Have twice Your annual content was saved
• At the age of 40: Have three times Your annual content was saved
• At 45 years: Have four times Your annual content was saved
• At 50 years: Have six times Your annual content was saved
• At the age of 55: Have seven times Your annual content was saved
• At the age of 60: Have Eight times Your annual content was saved
• At the age of 67: Have 10 times Your annual content was saved

If you are not sure where you are, CNBC can acquire retirement calculator to estimate how much you should save based on your current age, income and existing savings.

It is also worth remembering that due to interest interest, starting with what you can afford – even if it is less than 10% – it is better than not saving at all.

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