We all know how important it is to put aside some of your income today to prepare for retirement. But how much is enough to be on track? If you are in your 20s or 30s, your savings rates will be one of the biggest factors in determining how much you accumulate for your post-work years.
While everyone’s goals are different, there are some general guidelines to help you determine if you are saving enough. Below are general savings guidelines by age, assuming you are just starting to save:
(Do not include employer match in these percentages, consider employer money as extra)
Under 30: Save a minimum of 10% of your income
Age 30-39: Save a minimum of 15% of your income
Age 40 and up: Save a minimum of 20% of your income
If you’re wondering whether your current balance measures up, below are rough rules of thumb of how much you should have saved by the time you retire.
By age 30: Have 1x your salary saved
By age 40: 3x your salary
By age 50: 5x your salary
By retirement: A range of 10 – 12x your salary
Be aware that these are general guidelines. If you plan to retire before 60, live in a higher cost of living state, or have considerable expenses in retirement, your savings rate may need to be higher.
Did You Know?
Your employer sponsors this financial wellness benefit from Francis. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
