Whether you are 22 or 62, retirement is something that should be not just in your mind for the future, but in your mind for today. Smart professionals are pumping their 401Ks and IRAs full of retirement money even when they’re young enough to think, “I barely have money for rent!” Because $100 less in rent today added to your 401K can mean thousands of dollars later. In fact, $10,000 put into a 401K in your 20s could add up to anywhere from $70,000 to $1 million + when you’re 70 (here’s the source for that little tidbit).
If you’re thinking, “I don’t need to worry about retirement yet.” You’re wrong. And if anything is going to scare you into re-budgeting and re-prioritizing your retirement savings, this one line should:
Eleven times your final working salary.
The New York Times calls that “An Estimate Needed for Retirement Savings.” Think that through. Think it through in this order:
- What is your yearly salary today?
- Multiply that by 11.
- What salary do you hope you’ll be making in 10 years?
- Multiply that by 11.
- Based on your salary in 10 years, what do you hope you’ll be making when you retire?
- Multiply that by 11.
Scared yet? If that’s not a wake-up call, I don’t know what is. So do it today. Re-budget. Re-prioritize. And start getting your retirement in order. It’s not just helpful. It’s necessary.
About the Author: Marcy Twete
Marcy Twete is the Founder and CEO of Career Girl Network and the author of the book “You Know Everybody! A Career Girl’s Guide to Building a Network That Works.” At Career Girl Network, Marcy provides women with information, resources, and networking to empower them in their careers and to advance the work of women in business as a whole. Prior to launching Career Girl Network, Marcy worked in numerous nonprofit organizations and as a consultant in the field of nonprofit fundraising, marketing, and community relations. Marcy is a graduate of the College of St. Benedict in St. Joseph, Minnesota, and a native of rural North Dakota. She is the Vice Chair of the Chicago Board of Directors for Step Up Women’s Network in Chicago and a member of the Advisory Board for Girls on the Run Twin Cities, and is dedicated to advancing the work of organizations that move the needle for women and girls worldwide.
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