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Originally Posted by anonymous_saver
The 10% savings amount is a somewhat arbitrary amount of saving towards retirement. Most just state this amount as a first step - it is a good goal to start off with.
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It isn't entirely arbitrary. It is based on the % of income you would need to save throughout your working years to adequately replace your income when you retire. However, it assumes you start saving when you start working in your mid-20s and that you work until age 65. If you don't start saving until later in life and/or plan to retire early, you need to save more than 10%.
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Steve
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