For workers both young and old, one pressing question can be: how much money do I need to save for retirement? While there is no right or wrong answer, as everyone’s situation is different, there are some guide posts to help you stay on track.
Some issues that can impact how much money you will need saved include: when you start saving for retirement, how much money you are saving, and at what age you’d like to retire.
To make sure you don’t outlive your retirement savings, Fidelity said one general rule is to save at least eight times your ending salary. To get to a point where that’s a feasible goal, Fidelity recommends starting slowly to build up your retirement savings.
For example, Fidelity recommends you have one-times your current salary saved by the time you’re 35. Then by 45 you should have three-times your salary saved, and five-times by 55. This will help you stay on track throughout your career so you’re not scrambling to add to your retirement funds near the end of your career.
However, each individual’s life might not fit into this plan. As life events happen, saving for retirement might be altered. Talk to your personal finance manager to make sure you are on a plan that works for your lifestyle.