| Age in years | savings target |
|---|---|
| 30 | 0.5 times current salary |
| 35 | 1 X |
| 40 | 2 X |
| 45 | 3 X |
| 50 | 4 X |
| 55 | 5 X |
| 60 | 6 X |
| 65 | 7 X |
| 67 | 8 X |
Source: Fidelity Investments/conga/story/2012/09/savingsagerate.html225350
For example, Fidelity says that a 35-year-old should be on track to cover her basic retirement expenses if she’s saved one year’s worth of her current salary and she continues to save at a specified rate until she retires at age 67. For a 40-year-old, it’s two times salary; for a 55-year-old it’s five times salary.
For people who are unsure about whether they’re saving enough—and plenty of us fit that description—this type of guidepost may be a useful check-in. Fidelity Investments, which unveiled the new tool on Wednesday, manages 401(k) plans for about 12 million participants and said workers are asking for this type of information.
Among workers who call for retirement guidance, “The No. 1 question we get from participants when they call is, ‘Am I on track?’” said Beth McHugh, vice president of thought leadership at Fidelity Investments.
