Home

Savings Calculator: Stimulating Retirement Savings

Wed, 06/28/2000 - 12:00am — Karen Stevenson
Description: 

A study commissioned by the Consumer Federation of America (CFA) and DirectAdvice.com notes that more than half of American households are behind where they should be in saving for a comfortable retirement. "The bad news is that most U.S. households will not be able to sustain their present standard of living into retirement," said CFA Executive Director Stephen Brobeck. "The good news is that most of the unprepared households could get ready by taking advantage of the magic of interest compounding. Saving just $25 a week for 40 years, with a 5 percent yield, will result in an accumulation of more than $165,000."

To help consumers, they have posted an online "Savings Calculator" that shows how compound interest can effect the amount of money a person could save over time by making simple lifestyle changes, like using store-brand coffee instead of "designer" coffee. (They calculate that would allow a 40 year old to save nearly $17,000 by the time he or she is age 65, at a 5% rate of interest.)

A study commissioned by the Consumer Federation of America (CFA) and DirectAdvice.com notes that more than half of American households are behind where they should be in saving for a comfortable retirement. "The bad news is that most U.S. households will not be able to sustain their present standard of living into retirement," said CFA Executive Director Stephen Brobeck. "The good news is that most of the unprepared households could get ready by taking advantage of the magic of interest compounding. Saving just $25 a week for 40 years, with a 5 percent yield, will result in an accumulation of more than $165,000."

To help consumers, they have posted an online "Savings Calculator" that shows how compound interest can effect the amount of money a person could save over time by making simple lifestyle changes, like using store-brand coffee instead of "designer" coffee. (They calculate that would allow a 40 year old to save nearly $17,000 by the time he or she is age 65, at a 5% rate of interest.)