Save Salary Increases to Boost Your Retirement Nest Egg

Each time that you receive a salary increase or bonus invest all or part of that money for your retirement. The savings will add up. For example, suppose that you are age 35 and you intend to work another 30 years. Your current salary is $70,000 a year and further assume that you will receive a six percent annual salary increase each year for the next 30 years.

If you invested fifty percent of each annual raise at six percent return, in 30 years you would have $263,697.30. A seventy percent savings rate would give you $369,176.22.

Applying a simple rule such as this, will help ensure that you have a financially secure future.

Related Articles:

Getting To One Million Dollars for Retirement Takes Discipline
Preparing for Retirement Takes Some Planning
Retirement Calculator - Three Easy Steps

Posted August 26, 2007.