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      Are You Saving Too Much for Retirement?

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      Could you be saving too much?

      It isn't something you hear every day butone financial expert said some Americans may be putting aside too much of theirmoney for retirement.

      Most Americans can't rely on pensionsand plan for their retirement by saving a portion of their earnings. However,they may be overestimating just how much they need.

      David Blanchett, of Morningstar InvestmentManagement, found that many people save an average of 20 percent more thanneeded for retirement.

      The long standing retirement rule hasbeen that you need to replace about 70 to 80 percent of your pre-retirementincome when you finally decide to stop working.

      Blanchett examined expenses and foundthat number may be too high.

      He said people tend to spend the mostmoney in their 40's and 50's but noted that spending declines once kids are outof college and mortgages are paid off.

      Based on that logic, he said that manypeople may only need to replace about 50 percent of their pre-retirementearnings.

      This means if your average income is around $56,000 ayear, social security will cover a good chunk of your likely spending over theage of 65. He did note that those who earn more may need to save more if theywant to maintain their standard of living.

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