There is a lot of confusion around retirement, and particularly recommended retirement savings by age.
It’s enough to make your head spin.
Fidelity came out with a simple formula to calculate how much you need to retire.
How Much Do I Need To Retire?
If you plan to retire at 67, you should have 10X your income saved.
If you plan to retire at 65, you should have 12X your income saved.
If you plan to retire at 70, you should have 8X your income saved.
How Much Should I Have Saved for Retirement by Age?
By age 30, you should have 1X your annual income saved
By age 50, you should have 6X your annual income saved
By age 67, you should have 10X your annual income saved
Most generic personal finance advice says you should save 10-15% of your income for retirement.
How Much of My Annual Income Should I Save for Retirement?
How much do households actually have saved by age? The answer may surprise you.
Average Retirement Savings by Age
According to the Federal Reserve, the median retirement savings for someone in their prime working years is only around $20 – $30,000!