Is Your Retirement Plan on Track?

Rules of thumb won't cut it for this important question; how to customise based on your own situations?

Christine Benz 29 January, 2015 | 10:40AM
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Are you saving enough?

It might seem like the most basic of investing questions, but for many people, the "right" answer is elusive. Even people who are comfortable tackling sophisticated financial tasks like determining their asset allocations and conducting due diligence on individual stocks and funds may um and ah when it comes to assessing the viability of their savings rates and, in turn, the soundness of their plans.

It's not hard to see why. The right level of savings depends on a huge gamut of factors, many of them unknowable and highly dependent on each individual. Unless retirement is close at hand, few of us know how much we'll want or need to spend in retirement; nor do we know how much of a helping hand market returns will provide over our holding periods, both in the years leading up to retirement and during it. And then there's the mother of unknowables: the duration of our retirement years, which requires us to forecast our own life expectancy.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.