An economist at Brown, Jonathan Skinner, has written a recent paper asking if you are saving enough or too much for retirement (link here)? The paper suggests how much you have saved by the time you are 40 years old. The amount depends on your marriage status, kids, and if you own or rent a house. The paper does not offer any advice on how much someone under 40 should save, only saying that you should take advantage of matching funds and IRA accounts. This week I will look at these numbers to see how much one would need to save to reach these targets.
I will examine it for two types of people mentioned in the paper.
1 Single, $68,000, house
2. Married, $136,000,house, two children
Plus a single person making 30,000.