If you start saving for retirement in your thirties, a rough guideline is that you need to save 15% of your income every month in order to retire at age 65 with about 60% of the income you earned before retirement.
Typically, one would need less income after retirement, as some of your expenses would fall away, e.g. travelling to work. However, you need to keep in mind that other expenses, such a medical costs, could increase as you get older.
If you are currently saving less than 15% of your income, it would be a good idea to increase your contribution. Make sure that you increase your contribution every year as your income increase with inflation.
You also need to think carefully about when you plan to retire. An additional five years of work will mean five more years of saving and investment growth, and five less years that you need to live off your retirement provisions. This could have a big impact on your financial situation after retirement.
A registered financial adviser will be able to determine whether you are on track with your retirement savings and how much additional savings may be required.
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