How Much Should You Have Saved By Now?
When meeting with clients, one of the most frequent questions I get is “How does my savings compare to others my age?”, or (essentially) “am I on track?”.
The size of your nest egg will almost always vary compared to your peers. Whether you are on track or not depends on your personal goals and objectives. When you wish to retire, and how much income will you need depends entirely on your own unique vision for retirement.
That’s why when I recently came across this chart from JP Morgan, I thought it was a useful tool for a quick retirement progress checkup:
Instructions: Find the intersection between your current annual gross income and your age. Take that number and multiply it by your income; this is the dollar amount that you should already have saved in order to maintain your lifestyle in retirement. For Example: If a person makes $50,000.00 and is age 35, they should have saved $15,000.00. By age 40, that same person should have $40,000.00.
While this table can be informative, it simply provides a guideline for how much money you’ll need today to meet future goals. It is not a substitution for meeting with an advisor and formulating a personalized plan. Savings rates, tax deferral, estate considerations, investment management and insurance coverage are all equally important along the way. Call us today if you need assistance while making plans for an enjoyable retirement.