"The guidelines assume you will need to replace 70% to 80% of your pre-retirement income and that Social Security will cover a meaningful portion of that gap."
"The average account balance is $148,153, but the median is only $38,176. That big difference exists because a relatively small number of people with very large balances pull the average way up."
"A 60-year-old earning $80,000 who follows Fidelity's benchmark should have about $640,000 saved by now. Yet the typical person in that age group has less than $100,000."
Retirement benchmarks suggest saving 1x salary by 30, 3x by 40, 6x by 50, and 10x by 67, based on assumptions about income replacement and Social Security. These guidelines assume a need to replace 70% to 80% of pre-retirement income, but actual needs vary significantly. For instance, someone with a paid-off home may need only 55% to 60%, while others with dependents may require 12x or more. The median 401(k) balance is significantly lower than the average, indicating a widespread retirement savings gap.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]