Wondering how much you should have saved for retirement by a certain age? According to a report, individuals should aim to have one to one-and-a-half times their income saved for retirement by age 35, and three to six times their preretirement gross income saved by age 50. Starting to save earlier allows for compound interest to grow your money over time. So, if you’re not quite on track, it’s never too late to start saving.
How Much Savings Should I Have at 35?
As we approach our mid-thirties, many of us start to wonder if we’re on track for retirement. It’s a valid concern, considering that retirement is a time when we want to be financially secure and comfortable. But how much savings should we have at 35?
Reasonable Target for Retirement Savings
So to answer the question, we believe having one to one-and-a-half times your income saved for retirement by age 35 is a reasonable target. This means that if you’re earning $50,000 a year, you should have at least $50,000 to $75,000 saved for retirement by the time you turn 35.
Of course, this is just a general guideline, and your individual circumstances may vary. For example, if you started saving for retirement later in life, you may need to save more aggressively to catch up. On the other hand, if you have a pension or other retirement benefits, you may not need to save as much.
On Track for Retirement Savings at 50
By age 50, you would be considered on track if you have three to six times your preretirement gross income saved. So if you’re earning $50,000 a year, you should have between $150,000 and $300,000 saved for retirement by age 50.
Again, this is just a general guideline, and your individual circumstances may vary. If you’re planning to retire early, you may need to save more aggressively. If you’re planning to work longer, you may not need to save as much.
Why Saving for Retirement is Important
Regardless of your individual circumstances, it’s important to start saving for retirement as early as possible. The earlier you start, the more time your money has to grow through compound interest.
Plus, Social Security benefits may not be enough to cover all of your expenses in retirement. In fact, the Social Security Administration estimates that benefits will only replace about 40% of the average worker’s preretirement income.
In conclusion, having one to one-and-a-half times your income saved for retirement by age 35 is a reasonable target, and having three to six times your preretirement gross income saved by age 50 is considered on track. However, these are just general guidelines, and your individual circumstances may vary. The most important thing is to start saving for retirement as early as possible and to save as much as you can afford.
Remember, retirement is a time when you want to be financially secure and comfortable. By following these guidelines and taking steps to save for retirement, you can help ensure that you’ll be able to enjoy your golden years without financial worry.
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