How Much Should You Have Saved at Every Age?
How much to have saved by every age is a perennial personal finance question, right up there with how to create a budget and how to start investing. But like so many
Fidelity suggests saving your yearly income saved at 30, three times your income at 40, seven times your income at 55, and 10 times your income at 67. It uses your salary as a metric in order to "simplify your planning, and help you determine if you are on track throughout your working life."
Morgan Stanley , too, subscribes to this rule of thumb, suggesting three times your salary at 40, six times at 50, eight times at 60, and 10 times by 67.
For many people, those numbers just aren't feasible (the U.S. Government Accountability Office reported in 2015 that 29% of households aged 55 or older had no retirement savings), and Fidelity acknowledges that they're more guideposts than hard-and-fast rules. Perhaps a better way to think about retirement savings isn't in terms of your current salary, but rather what your expenses are and will be: do you want to maintain your current lifestyle? Downsize? Will you work at all? How much will your Social Security benefit be?
No blueprint is right for everyone, but they all get at the same thing: At least have a frame of reference for how much money you'd like to have, and work toward it. Personally, I keep these figures in the back of my mind, but recognize that I likely won't hit all of them. What about you? Do you follow any of these, or have you made up your own?