“Am I on target for retirement?” We get that question a lot because retirement assets are always a part of the mortgage conversation. A recent report from Aon Hewitt, a leading HR and benefits consulting firm, said that, upon retirement, the average worker will need 11 times his or her final working salary (plus any Social Security). This figure is based on maintaining the same standard of living and takes inflation and future medical costs into account.
But wouldn’t it be great to know if you’re on target before age 65? While it’s good to know the total amount you need to save by the time you retire, it may be more helpful to have some shorter-term goals to aim for. Here are some key age-based benchmarks to hit along the way:
- Age 28 – have 2 times your current annual salary saved.
- Age 41 – have 5 times your current annual salary saved.
Remember, as your income increases, so do the multiples used in calculating your benchmarks. This accounts for the exponential growth of the amount you need to save.
Retirement is a journey, and although there is no single right answer to retirement saving, regular consulting with your financial advisor will help you zero in on the right path.