Here's How Much You Should Have Saved Based on Your Age
The question of how much you should be saving for retirement is answered here, according to CNBC.
The answer to the question of how much you should save depends on the timing of your retirement and the lifestyle you want to have. However, there is a basic foundation you can follow to guarantee a floor for retirement. According to Fidelity Investments, you should save 10 times your income if you want to retire by age 67.
Retirement goals are easier to achieve when you start at an earlier age.
Here’s how much Fidelity says you need to save by every age to be set for retirement:
- By age 30: the equivalent of your annual salary saved
- By age 40: three times your income
- By age 50: six times your income
- By age 60: eight times your income
- By age 67: ten times your income
These savings guidelines include all retirement savings as well, such as a 401(k) or Roth IRA.
To get started Fidelity recommends saving 15 percent of your income each year (starting at age 25). You should then invest 50 percent of your savings in stocks to get a higher return on your money.
However, this isn't common knowledge for many Americans. TD Ameritrade recently reported that a survey of 2,000 US adults aged 40 to 79 found that almost 2/3 of Americans in their 40s have less than $100,000 in retirement savings. Even worse, 28 percent on individuals in their 60s have less than $50,000.