You can't afford to be wrong about your retirement needs.  You only have one chance to build your Retirement Plan. Since there is no consensus on what percentage of your pre-retirement income you'll need during your retirement, why take chances that your Plan will come up short?

Compass Investors strongly recommends that your retirement goal should be to have your Retirement Plan safely generate 100% of your FINAL salary every year of your retirement -- for as long as you live.

How can you reach the goal with your Retirement Plan? If you grow your Retirement Plan value to 20 times the amount of your FINAL salary, you can then safely invest that amount and earn a minimum of 5% interest per year. The earned interest will provide you the same amount as your final salary every year without ever having  to withdraw any of the original Plan balance.

Be prepared for the unexpected. And, because you will have the full value of your Retirement Plan available during your retirement, you have a "cushion" for the unexpected -- and the freedom to do as you wish.

Determine your personal Retirement Plan goal. Use the table below to determine your approximate FINAL salary and how much money you will need to have in your Retirement Plan when you retire.

Example: Assume your CURRENT salary is $40,000 and you want to retire in 25 years. Looking in the "25" column of the table you will see that your approximate FINAL salary will be 2.0 times your CURRENT salary, i.e., $80,000 (40,000 x 2.0). The goal is therefore to have a Retirement Plan balance at retirement equal to $1,628,000 (40,000 x 40.7).
 

Years Left to Work Before Retirement	40	35	30	25	20	15	10	5
Final Salary: Multiple of Current Salary*	3.2	2.7	2.4	2.0	1.8	1.5	1.3	1.1
Retirement Plan Value: Multiple of Current Salary*	63.4	54.6	47.1	40.7	35.1	30.3	26.1	22.5
* Assumes an average annual salary increase of 3%

NOTE: Compass Investors provides a calculator that can help you easily determine if YOU are on track to reaching your Retirement Plan goal.