If you’re participating in your company’s retirement plan, you understand the importance of saving now for your future. But, how savvy are you when it comes to knowing how much you should be saving for a comfortable retirement? Take this short quiz and find out!
1) In order to maintain living standards in retirement, what percent of annual income do financial professionals think people should save?
A. About 3%
B. About 6%
C. About 9%
D. About 12%
E. About 15%
2) If an investor could set aside $50 each month for retirement, how much might that end up becoming 25 years from now, including interest if it grew at the historical stock market average?
A. About $15,000
B. About $30,000
C. About $40,000
D. About $50,000
E. More than $60,000
3) Roughly how much do many financial professionals suggest people think about saving by the time they retire?
A. About 2-3 times the amount of your last full year income
B. About 4-5 times the amount of your last full year income
C. About 6-7 times the amount of your last full year income
D. About 8-9 times the amount of your last full year income
E. About 10-12 times the amount of your last full year income
4) Which of the following do you think is the single biggest expense for most people in retirement?
B. Health care
E. Discretionary expenses
5) About how much will a couple retiring at age 65 spend on out-of-pocket costs for health care over the course of retirement?
- E. About 15%. 2. C. About $40,000¹. 3. E. About 10-12 times the amount of your last full year income. 4. A. Housing². 5. D. $260,000³.
How did you score? Is it time to increase your deferral percentage? Contact your Human Resources department for assistance.