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Retirement Report Card

report.jpgWe always mention web sites that help you crunch your "retirement number".   Tools that help you determine just how much you'll need to save for retirement are being developed by several mutual fund companies and financial providers right now.  

 Here's one more approach, see how you score on the T. Rowe Price retirement report card.

T. Rowe Price offers these savings benchmarks to help understand where savers stand today:

Give yourself an A if you're at retirement and have 11 times income in your savings account; it will replace 52 percent of your current salary in retirement (Social Security and any employer pensions would be on top of that). Give yourself a B if you've got 10 times' final pay, which will replace 47 percent of income. Anything less and you're probably looking at a different lifestyle in retirement.

If retirement is 10 years out, give yourself an A if you've got six times salary, which will mean you're on track to replace 47 percent of final pay. Give yourself a B if you have five times (41 percent replacement); C for three times (28 percent); and a D for one time your salary (15 percent). For anything less, give yourself an F.

Posted on Saturday, January 6 by Registered CommenterWise Owl | Comments Off