Unlocking The Secrets Of Retirement Savings By Age: Are You On Track?
If you’ve ever wondered whether your retirement savings are sufficient, you’re not alone. Many people could be saving more, but fear not! We’re about to reveal the average retirement savings by age, giving you a clear sense of where you stand on the path to financial freedom.
Discover the Average Retirement Savings by Age
Curious about how much your peers have saved for retirement? Look no further! We’ve gathered data from Fidelity Investments to provide you with the average 401(k) balance for different age ranges.
- Age 20-29: Average 401(k) Balance $12,800
- Age 30-39: Average 401(k) Balance $43,100
- Age 40-49: Average 401(k) Balance $100,300
- Age 50-59: Average 401(k) Balance $175,400
It’s worth noting that these figures represent averages. Even if your balance exceeds these numbers, consider factors like income and strive for financial security in retirement.
Explore the Median Retirement Savings by Age
Don’t get skewed by extreme savers! The median retirement savings provide a more accurate picture. Take a look at the median 401(k) balance for different age ranges.
- Age 20-29: Median 401(k) Balance $4,600
- Age 30-39: Median 401(k) Balance $16,200
- Age 40-49: Median 401(k) Balance $32,100
- Age 50-59: Median 401(k) Balance $53,400
Notice the significant difference between average and median balances.
Unveiling the Recommended Retirement Savings by Age
Determining the ideal retirement savings depends on your age, desired retirement age, and income. Consider variables like Social Security benefits, retirement expenses, and additional income sources when planning for the future.
Married Couples: Retirement Savings Insights by Age
Couples have unique retirement planning advantages and challenges. While shared expenses can be beneficial, the need for long-term care can increase. Check out the guidelines for both singles and couples, keeping in mind that a non-working spouse may require higher savings amounts.
Let’s Break It Down
- Age 30: Aim for at least one year of salary saved.
- Age 40: Set a target of four times your annual salary.
- Age 50: Strive to accumulate around seven times your salary.
- Age 60: Target a minimum of eleven times your salary.
Remember, these numbers are benchmarks. Your retirement needs will depend on your lifestyle, debt, and anticipated expenses.
Take Action Now
It’s never too late to start saving for retirement! Begin now to enjoy the benefits, including potential tax advantages. Secure your financial future and ensure a comfortable retirement.
Rees Bridges brings a unique value to the IFW as both a highly accomplished creative professional and a successful financial services executive to serve in his role as Senior VP, Marketing & Communications.
Over the last decade Rees has served as the lead marketing & communications professional for a Fortune 500 Financial Services firm. He oversaw all advisor marketing strategies, client communications, and the entire firms branding and marketing initiatives.
Rees continues to pursue his passions as a creative professional & musician for over 30 years, with an impressive profile and reputation as a designer, performer, teacher, and studio musician. Here is a little secret: He serves in the role as an international clinician for Mapex drums, Paiste Cymbals and held the record for world’s fastest drummer between 2006 and 2007.
Rees grew up in London, England and currently resides in Miami, Florida. When not at work, he enjoys spending time with family and friends, traveling, and indulging in his passions for music and creative pursuits.
