I know the general rule of thumb is you should save 15% of income to retirement, but I'm playing catch-up after years of neglect and contributing 25% until I catch up again. But how will I know when I'm on target again in the retirement account?
I already have an emergency fund in place & debt paid off apart from the house
If I knew when I was on target again, I'd be inclined to then reduce to 15% again and redirect the additional 10% into college funding for kids and/or paying the house off early. But I have no idea what the retirement fund should be at this point in time.
Is there some formula like: income x [some factor of my current Age] = current Retirement account target
I think this question is different from What size “nest egg” should my husband and I have, and by what age? as that question is asking what is the final end goal amount at retirement age. Whereas I want to know what the gap is in my current fund now.
And I think that knowing the current gap is actually more useful?