Get Your Savings on Track

22 10 2012

Get started and set goals.  Fidelity Investments recently put together an age-based savings guideline.

Here are the guideposts:

  • At age 35, you should have saved an amount equal to your annual salary.
  • At age 45, you should have saved three times your annual salary.
  • At 55, you should have five times your salary.
  • When you retire at age 67, you should have eight times your annual pay.

Sounds easier said than done, right?  Fidelity provides some shorter term goals to meet along the way which is helpful because having short-term goals can make a daunting task more achievable.  One example is to begin saving in a workplace retirement plan, such as a 401(k), at age 25. Save continuously and without interruption until age 67.  Fidelity recommends starting out by saving 6% of your salary and increasing by 1% per year until reaching 12%.

Unfortunately, almost no one is saving money in their early twenties, and if they are, it’s not 6% of their pay! These guideposts above could help you to reach retirement security, however it is imperative to get started as early as possible.  Regardless of your age, are your savings on track for retirement?