One of the most common questions we get is how much someone should have saved for retirement at their age. That's a tough one to answer because we don't track employees' actual retirement balances, but GoBankingRates.com provided some insight by comparing its own survey results with savings guidelines from J.P. Morgan. According to them, a 40-year-old earning the median salary of $67K should have more than $100K in their retirement nest egg, but only 20% actually do. A 50-year-old earning the median income of $71K should have over $212K, but only 22% are there. A 60-year-old earning the median $61K a year should have more than $260K, but only 26% have hit that.
Are You On Track?
Not there? Don’t panic (yet). First, you’re NOT average. It's best to run a personalized retirement calculation because your actual target depends on a variety of factors:
When do you plan to retire? Retiring early will obviously mean having to save more, but the bigger mistake is actually planning to work longer. A study by Voya Financial found that 60% of U.S. retirees said they had to stop working unexpectedly. A third left their jobs involuntarily, 16% because of health problems, 11% because of a job loss, 3% because of family care taking and 3% because of age. Planning to retire earlier can also give you the option of possibly working longer should you find yourself coming up short.