Consider this scenario, you are 40 years old, you are making $50,000 a year and only have $5,000 in the saving account. and no money in any retirement savings. Your job does not offer a pension. Retirement seems doomed.
What kind of retirement can I afford? Use Retirement Calculator to test it out.
There is still Hope
Your Social Security benefit is very important. Assuming you paid your share, your estimated starting benefit may be $3,000 a month (almost $2,000 in today’s dollar). If you start putting aside 6% (or 3% if your employer also put up 3%) in a retirement account, and let it grow at an average rate of 6%. You will be getting $4,000 a month (about $2,500 in today’s dollar).
