How Behind Are Your Retirement Savings?

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Don't you think that maybe Ms. Palmer is just suggesting that for the late starters, like me, ideally, if one would have/could have started to save $1,000/month (smile!)...grinning and bearing it
at age 25, then one would have/could have amassed quite a nest egg by retirement?

EloPat of DC 1:49PM June 29, 2010

Because saving for retirement is supposed to be long term, 8% is a good/conservative historical average to use for long term investment return projections.
Now as for the 12K/year at age 25, that's a pipe dream except for an elite few. With that said, begin by saving 3-4% (or less) of your take home pay. The trick is to increase your savings rate every year. Ultimately shoot for saving 10% -10 cents on every dollar.

Jane Nowak, MoneyGal2020 of GA 3:03PM June 08, 2010