According to Fidelity Investments, the nation's largest retirement plan provider, the following are the average retirement balances by age cohort (see the full article here)
Age 20 to 29: $11,500
Age 30 to 39: $42,700
Age 40 to 49: $103,500
Age 50 to 59: $174,200
Age 60 to 69: $192,800
Where should you be?
That depends on how old you are. Fidelity Investments recommends the following:
By age 30: Have the equivalent of your starting salary saved
By age 35: Have two times your salary saved
By age 40: Have three times your salary saved
By age 45: Have four times your salary saved
By age 50: Have six times your salary saved
By age 55: Have seven times your salary saved
By age 60: Have eight times your salary saved
By age 67: Have 10 times your salary saved
What's the problem?
Well, according to actuarial tables developed by the social security administration, if you live to be 67 and you're a male, you'll likely live to be at least 83. If you're a female, you're likely to live to at least 85. So, planning to live another 20 years or so on less than $200,000, or roughly $10,000/year could be problematic.
But social security will still be there, right?
Yes, in all likelihood social security will be there. But so will all the public debt and unfunded liabilities that our local, state and federal government(s) have piled up. So what you get in social security benefits may have to pay for more than you may be considering right now.
Better to get with us now and plan ahead.