If you’re like most Americans, you don’t know how much money you will need to retire comfortably.
Sadly, 56% of Americans say they aren’t sure how much they’ll need in savings to make it through retirement, according to Northwestern Mutual’s 2019 Planning & Progress Study.
And it’s not a surprise as to why.
Experts recommend saving 10% to 15% of your income for retirement.
And if you have a traditional job, you already pay 6.2% of your salary in Social Security taxes.
But it can be hard to decipher how much money that will give you later on.
In this case, there are two puzzle pieces to your monthly retirement budget: your personal savings and Social Security.
NerdWallet crunched the numbers to figure out the personal savings side of your retirement plan. These numbers assume you save 10% of your $50,000 income a year, get a 6% return on your investments while you are working and retire at 67. And for retirement, we assume a 3% return on your nest egg.
Check out the video to see a breakdown of how much money your savings and Social Security benefits will translate into when you retire.