Enough to REtire

Fidelity’s new guide estimates that workers should save at least eight times their salary by the time they retire at age 67, in order to replace 85% of their pre-retirement income. (To reach that 85% replacement rate, Fidelity adds in expected Social Security benefits.) The guide offers specific age-based savings goals to meet along the way.

Retirement savings

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

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.

Also, Fidelity assumes you’ll work and save continuously until you’re 67, and will die at 92. Your investments will earn an annual 5.5% along the way, and your salary will grow 1.5% a year over and above a general inflation rate of 2.3%, according to Fidelity’s assumption

http://www.marketwatch.com/story/retirement-savings-how-much-is-enough-2012-09-12?siteid=nwhpf

Interesting to me at least, of course, I am retired, I certainly hope I have that much!