Average Retirement Savings By Age: Are You Normal? 

Did you know the #1 method people use to estimate how much money they need for retirement is guessing? (According to a study done by the Transamerica Center for Retirement Studies.)

Can I Work and Collect Social Security?

Simple Method to Calculate Recommended Retirement Savings by Age

If you are the typical household making around the median wage and plan to retire at the normal retirement age, then this simplified rule of thumb is a good place to start (certainly better than guessing!)

How Much Do I Need To Retire?

Fidelity's calculations take into account assumptions such as how much of your income will be replaced by social security, the age you retire, and estimated investment returns.

If you plan to retire at the full retirement age of 67 (as currently defined), you should have 10X your income saved.

If you plan to retire at 65, you should have 12X your income saved (to compensate for a lower social security payout).

If you plan to retire at 70, you should have 8X your income saved (because of the higher social security benefit).

Of course there are a lot of assumptions involved, but as a rule of thumb, it is a great place to start. Most people do not drastically alter their lifestyle after retirement, so basing it on your income is a reasonable assumption. And this method gives a quick and easy method to calculate if you are on track or not.

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