is this how much you should have saved?

Is this how much you should have saved?

How much should you have saved at every age of your life? Have you thought about how much you should have saved by 20 years old? 25? 35? 45? Chasing after a certain dollar amount by age can be elusive. Is $1,000,000 enough? Would $1,000,000 be too much or is it not enough? Is this how much you should have saved?

Recently the Business Insider published an article on how much you should have saved by age. The article contains a table from Fidelity on how much you should have saved by age. Below is an example of such table:

30 1x salary 70,000
35 2x salary 140,000
40 3x salary 210,000
45 4x salary 280,000
50 5x salary 350,000
55 6x salary 420,000
60 7x salary 490,000
65 8x salary 560,000

Is this how much you should have saved?

Though this table at first appears to answer all of our questions above it is arbitrary. At the age of 65 your money problems will not disappear, you may not have enough to live on during retirement. With an expectation that you will live 10 years you will have $56,000 per year. With an expectation of living to 85 years old the amount of money per year is reduced to $29,000. Is that enough money to live on each year? It is a tough decision. The above table is interesting however not the end all strategy. What else do you need to consider?


What else do you need to consider when determining how much money you should have saved at every age, especially your retirement age.


Does work provide a pension? How much would you get each year? Will you be receiving a government pension as well? You will need to determine whether your pension(s) will be sufficient to fund your expected life style; consideration should be given as to whether having an additional pool of money is needed to supplement your pension.

Downsizing to build a savings

Selling your home and downsizing for retirement can put some well needed cash into your bank account. Many folks bank on selling their homes and downsizing for retirement. You can add tens of thousands to hundreds of thousands of dollars to your bank account depending on the market in which you sell your home and when you sell it. Moving to a smaller city/town where real estate prices are much cheaper gives you more money in your bank account.


Saving and investing early is a great way to get ahead! The power of compounding combined with starting early can yield you a lot more money then when starting later. You may not need to save as much later on because of the investment income being earned on your investments you build up early.

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