Experts like Fidelity Investments recommend you save at least 10 times your salary by your 67th birthday if you want to have a comfortable retirement. Supplemented with Social Security, this may be enough to cover your expenses through an average life expectancy.
Those numbers account for increasing income and compound interest as you age. An on-time retirement savings looks like this:
- 1x your salary saved by age 30
- 3x your salary saved by age 40
- 6x your salary saved by age 60
- 10x your salary saved by age 67
If you’re on track, fantastic. If you’re late, you have some catching up to do. If you haven’t set up a personal budget, make that the first thing you do. Once that’s in order, you’ll be able to implement the strategies below to get ready for your golden years…