More than 10% Required for Retirement Savings?

Physician's Money Digest, December 2005, Volume 12, Issue 16

Wall

Street Journal

Remember the rule that saving 10% ofyour pretax income ensures a healthyretirement fund for the golden years? Ifthe physician-retirees of the future expectto live as comfortably as generations past,they need to save between 15% and 20%of their income, according to the . That figure is much higherthan the 1.3% national savings ratereported in 2004 by the CommerceDepartment's Bureau of Economic Analysisand well below the 8% to 10% of disposableincome saved in the 1960s throughthe 1980s. The lowest reported since 1934,the rate suggests that we as a society havebecome more extravagant with our money.At a time of vanishing company pensionsand the demise of Social Security, not onlysaving money, but saving more moneyshould be a top priority for mostAmericans, who are expected to live 4years longer vs their 1950 counterparts.