Many Americans want to retire before turning 65, and they're pretty optimistic about achieving that goal.
Nearly three quarters of American adults — 74% — are confident they'll be able to retire at 64, per New York Life's recent "Wealth Watch" survey. The life insurance firm polled around 2,200 people of various ages, genders, races and educational backgrounds.
However, only 41% of respondents currently have money saved for retirement. Even fewer say they have a retirement saving strategy in place, per the survey.
But they may want to make a plan sooner rather than later. The average American thinks they'll need around $1.3 million to retire comfortably, according to Northwestern Mutual's "Planning and Progress" study.
Taking that into account, CNBC calculated how much you would need to save each month in order to retire at 64 with $1.3 million. These calculations assume a beginning balance of $0 and starting ages of 21, 25 and 30. The calculations don't factor in common, but unpredictable, life events such as layoffs, promotions or market volatility.
And since experts typically say you should aim to save 15% of your annual income for retirement, CNBC calculated the yearly income you would need in order to reach a 10% and 15% savings rate.
If you start at 21
Earning a 5% annual rate of return: $715 per month
- Annual salary needed if you save 10% of your income: $98,970
- Annual salary needed if you save 15% of your income: $65,983
Earning a 7% annual rate of return: $397 per month
- Annual salary needed if you save 10% of your income: $54,943
- Annual salary needed if you save 15% of your income: $36,630
Earning a 9% annual rate of return: $211 per month
- Annual salary needed if you save 10% of your income: $29,186
- Annual salary needed if you save 15% of your income: $19,458
If you start at 25
Earning a 5% annual rate of return: $903 per month
- Annual salary needed if you save 10% of your income: $124,944
- Annual salary needed if you save 15% of your income: $83,334
Earning a 7% annual rate of return: $534 per month
- Annual salary needed if you save 10% of your income: $73,883
- Annual salary needed if you save 15% of your income: $49,257
Earning a 9% annual rate of return: $305 per month
- Annual salary needed if you save 10% of your income: $42,170
- Annual salary needed if you save 15% of your income: $28,115
If you start at 30
Earning a 5% annual rate of return: $1,216 per month
- Annual salary needed if you save 10% of your income: $168,363
- Annual salary needed if you save 15% of your income: $112,248
Earning a 7% annual rate of return: $779 per month
- Annual salary needed if you save 10% of your income: $107,909
- Annual salary needed if you save 15% of your income: $71,943
Earning a 9% annual rate of return: $485 per month
- Annual salary needed if you save 10% of your income: $67,213
- Annual salary needed if you save 15% of your income: $44,811
Don't panic if it isn't feasible to set aside the recommended 15% of your income just yet. It's OK to start by contributing what you can and steadily increasing over time. One way to do this is by increasing your contributions by 1% each year until you reach the recommended saving rate.
But you'll want to start as early as you can. Even if you only set aside a small amount each month, the power of compound interest can help your retirement funds grow quickly.
While it may not be your goal to retire as a millionaire, it's still helpful to have an end goal in mind as you map out your retirement saving strategy. CNBC Make It's retirement calculator can help you get an idea of how much money you may need to save for your post-work years based on factors like your current age, when you hope to retire and how much you've already saved.
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