Question 1

How much do I need to save for retirement?

Accepted Answer

It depends on your desired lifestyle, retirement age, and life expectancy. A common rule is to save 25 times your annual retirement expenses.

Question 2

When should I start saving for retirement?

Accepted Answer

As early as possible. Thanks to compound interest, starting at 25 with small amounts beats starting at 40 with large ones.

Question 3

What annual return is realistic?

Accepted Answer

Historically, a diversified portfolio returns 6-8% annually. Adjusted for inflation, the real return is 2-5%.

Question 4

Is social security enough for retirement?

Accepted Answer

Social security typically covers only a fraction of your last salary. It's important to supplement with private savings and investments.

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