How much should investors save for retirement? It depends on their unique circumstances: their income, the “lifestyle they have become accustomed to” and when they start saving. This chart shows the percentage of gross income that may need to be saved if starting at various ages shown in the left column. For a current 25-year-old with these levels of household income, the annual savings rate ranges from 7% to 11% – an achievable goal with prudent financial planning. By contrast, a current 50-year-old may need to save between 32% and 48% of gross income, a very unrealistic scenario for many. The sooner saving starts, the better the chances of achieving retirement success.