Sometimes it’s hard to envision how much, if any, saving an extra $50 or $100 regularly for retirement really benefits you. So to help motivate you to save more and save often, here’s a simple illustration showing about a 2:1 ratio of future retirement income to current retirement savings.
This example assumes saving for 20 years with a 5% average annual return and current, really low interest rates. Your results will no doubt be different based on your circumstances. But the math here should give you a general sense of why saving more now pays off. Doubling your money for retirement income is a great way to maximize your retirement readiness!