The Basics of How Much to Save for Retirement
June 23, 2021 | Emma Frost
Knowing how much to save for retirement can be confusing. But retirement can become a lovely period in your life. Your kids are already grown-up, and you finally have plenty of free time to spend doing what you really want.
But only those who have managed to accumulate some savings before the retirement age will be able to fully enjoy this new life stage.
A general guideline that is often quoted is that you should aim to save at least 8-10 times your annual pre-retirement salary by the age of 67. Or you can try to put away 15% of your pre-tax income every year starting from the age of 25.
Let’s take a deeper look into everything you need to know about how much to save for retirement and how to deal with emergencies on your road towards savings using title loans.
How Much Do You Need to Retire?
The exact sum would certainly depend on your habits and your annual income. If you want to live in a beautiful house, travel the world, or finally pursue an expensive hobby, the numbers will certainly be higher.
So, everyone has their own answer when it comes to how much to save for retirement. You can try coming up with a ballpark annual estimate that is based on how much you spend now and what may change once you retire.
Take into consideration categories such as housing, transportation, food, health, entertainment, and so on.
Are You A Saver or An Investor?
Are you a saver who prefers to put the retirement funds into a savings account or under the pillow? Or are you an investor who chooses to keep the money that you have saved working for you?
Unfortunately, if you are in the first group the chances are high that you won’t be able to increase your savings at all. In fact, you might even lose a great sum due to inflation.
Investing, in its turn, gives the money the potential to grow faster. There are plenty of ways of doing so. Make sure to do your research on the topic or you might want to consult a professional.
Retirement Savings by Age
Answering how much to save for retirement can be dependent on your current age.
Knowing how much you need to save by a certain age makes the whole journey less intimidating.
Ideally, by the age of 30, you would have already accumulated an amount equal to your annual salary. Try to start an emergency fund that has 3-6 months of living expenses in it and enroll in your employer-sponsored retirement plan (if you have such an option). This will help you catch up on your goals.
For those starting a family, you should not forget about education savings.
By the age of 40, try to save two times your annual salary. Keep contributing to your emergency fund, education savings, and any additional savings, like the money that you invest.
Save four times your annual salaryby the age of 50 and eight times your salaryby 67.
How to Deal With Emergencies While Saving for Retirement
All these numbers concerning how much to save for retirement may seem a bit overwhelming. Moreover, they might make you feel like you are already dragging behind.
Having an emergency fund and being able to save a few annual salaries by a certain age is definitely a great strategy. But life is unpredictable and reaching this goal can be tough.
At one point, you might find yourself in urgent need of a sum of money that you don’t know where you can get.
And that’s where using a title loan comes in.
The Advantages of Car Title Loans
- Car title loans are one of the simple and quick ways to get money in a very short period.
- It can be of great help, if you urgently need cash for unexpected auto or home repairs or medical bills, for example.
- you can use a vehicle as collateral and still continue using your car throughout the length of the loan.
How to Obtain Car Title Loans?
- You are going to need a driver’s license or a state-issued ID, lien-free title to your vehicle, proof of income, and your vehicle for inspection.
- You can start by filling in the form online on Texas Car Title and Payday Loan Services, Inc.
- Once you submit your form, a loan representative will contact you to schedule a meeting and answer any questions you may have.
- Take the required items to the meeting for the loan representative to assess your eligibility.
The whole process takes as little as 30 minutes, and you have a chance to qualify whether you have good credit, bad credit, or no credit at all, Texas Car Title and Payday Loan Services, Inc. is committed to helping you.
Bear in mind that you can get car title loans with the titles of cars, vans, or trucks.
Emergencies Shouldn’t Affect Your Retirement Savings
Knowing how much to save for retirement is essential. A mark of around 8-10 times your annual pre-retirement salary should be enough to have a nice and comfortable life after the age of 67. The main key to success is to start as early as you can (the age of 25 is perfect).
However, life can be unpredictable, but emergencies shouldn’t throw you off. That’s when taking short-term emergency cash in the form of car title loans can be beneficial. Submit your online form today and find out if you qualify.