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Imagine you're 30 years old earning $50,000 a year, and that your salary goes up by 3% annually.
Let's also assume that starting at age 30, you're able to save 5% of your salary for the remainder of your career.
Saving for retirement can be a challenge on a single income, but if you don't want to risk running out of cash as a senior, you'd be wise to work on increasing your retirement plan contributions, with the goal of eventually being able to max out your IRA or 401(k).
Currently, workers under 50 can put up to $18,000 a year into a 401(k), and $5,500 a year into an IRA.
Related links: • Motley Fool Issues Rare Triple-Buy Alert • This Stock Could Be Like Buying Amazon in 1997 • 7 of 8 People Are Clueless About This Trillion-Dollar Market While we all have our share of money-related challenges, single folks often have it worse.