How much retirement should i have at 55

How much you should be saving for retirement is an age-old question that just about everybody wants to know. While the answer has a lot to do with when you plan to retire and the type of lifestyle you want to have in retirement, there are some general guidelines that you can follow at every age to help get you there.

According to retirement -plan provider Fidelity Investments , the rule of thumb is to save 10 times your income if you want to retire by age Adjust this amount if you want to retire any earlier or later.

Those retiring at 62 the earliest you can claim Social Security will need to save more to compensate for an additional five years without income. Those retiring at 70 probably won't need the full amount of 10 times their income, as they will have worked an additional three years and presumably have fewer years left to spend their savings.

While Fidelity's guideline is a big goal, it's more manageable when you start early and have many years to reach it. Fidelity suggests the following age-based savings milestones that would provide enough income for you to continue your current lifestyle in retirement rather than planning to downsize or spend more. The above savings guidelines include anything you have in a retirement account, like a k or Roth IRA, company matches, as well as your investments in things like index funds or through robo-advisers.

While personal savings goals can differ between individuals, these milestones can help you stay on track or kick it into gear if you're no where close. According to a TD Ameritrade report , which surveyed 2, U. But anyone, no matter their age or amount in savings, can get started with the same principles. Apply market research to generate audience insights.

Measure content performance. Develop and improve products. List of Partners vendors. Any mental health professional will tell you that comparing yourself to others isn't good for your peace of mind.

However, when it comes to retirement savings, having an idea of what others do can be useful information. Determining exactly how much you'll need for your own post-career days can prove difficult, but finding out how others are planning—or not—can offer a benchmark for setting goals and milestones.

The good news is that Americans have been making an effort to save more. How does that break down by age? Here's how Fidelity crunches the numbers.

The jump in the account balance size for Gen Xers could reflect the fact that these folks have logged a good couple of decades in the workforce and have been contributing to plans for that long. The slightly larger contribution rate may reflect the fact that many are in their peak earning years.

Savings-wise, it's now or never for this group. The fact that the contribution rate is as high as it is suggests that many baby boomers are continuing to work during this decade of their lives.

This opened up an additional retirement savings option for those currently working or running their own business. Of course, we're living in a vastly different world today than in years past. How each generation's ability to save for retirement will be affected by the financial impacts of the COVID pandemic is uncertain. What should you aim for, savings-wise? Fidelity has some pretty concrete ideas.

By age 40, you should have three times your annual salary. By age 50, six times your salary; by age 60, eight times; and by age 67, 10 times. The average employee k contribution rate as a percentage of salary in If you compare these yardsticks to Fidelity's k average balance figures, it appears that most Americans are behind in saving for retirement—even if they have assets in accounts other than their k s.

If that money were turned into a lifetime annuity, it would only amount to a few hundred dollars a month. Our simple widget lets you see the impact of these 2 variables—when you plan to retire and what kind of lifestyle you want to live in retirement—on how much you need to have saved when you do retire, and on all the intermediate milestones. What if you're behind? If you're under age 40, the simple answer is to save more and invest for growth through a diversified investment mix.

Of course, stocks come with more ups and downs than bonds or cash, so you need to be comfortable with those risks. If you're over 40, the answer may be a combination of increased savings, reduced spending, and working longer, if possible. No matter what your age, focus on the goals ahead.

Don't be discouraged if you aren't at your nearest milestone—there are ways to catch up to future milestones through planning and saving. The key is to take action, and the earlier the better. Start a conversation Already working 1-on-1 with us? Schedule an appointment Log In Required. Amount, account, and asset mix are important when saving for retirement. Get a weekly email of our pros' current thinking about financial markets, investing strategies, and personal finance.

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How aggressive you need to be in saving also depends on what other sources of retirement income you can reasonably expect. If you have a defined-benefit pension plan at your current employer or a previous one, you should be receiving an individual benefit statement at least once every three years. Many plans use formulas based on your salary and years of service.

Your benefits will be based on your 35 highest years of earnings, so they may rise if you continue working. Your benefits will also vary depending on when you start collecting them.

You can also delay receiving Social Security up to age 70, in return for a larger benefit. While these estimates may not be perfect, they are better than guessing blindly—or too optimistically. A survey by two University of Michigan researchers found that people tend to overestimate how much Social Security they were likely to receive.

Although you can take penalty-free distributions from your retirement plans as early as age 50 or 55 in some cases, it's better to leave them untouched and let them keep growing. With a Roth IRA, you can withdraw your contributions, but not their earnings, penalty-free, at any age. There is also an IRS exception, commonly known as the Rule of 55 , that waives the early-withdrawal penalty on retirement plan distributions for workers 55 and over 50 and over for some government employees who lose or leave their jobs.

It's complex, so speak with a financial or tax advisor if you are considering using it. The longer you leave your retirement accounts untouched up to age 72, when you must begin to take required minimum distributions RMDs from some of them , the better off you are likely to be. Finally, as you tote up your retirement savings, remember that not all of that money is yours to keep. When you make withdrawals from a traditional k -type plan or traditional IRA, the IRS will tax you at your rate for ordinary income not the lower rate for capital gains.

You may want to strategize to hold onto more of your retirement funds —for instance, by moving to a tax-friendly state. Internal Revenue Service. Department of Labor. Accessed July 17, Social Security Administration. Accessed Dec. Michigan Retirement and Disability Research Center. Social Security.