56% Of Workers Say They’re Not On Track To Retire—Here’s How Much Money You Actually Need

By Cheyenne DeVon

More than half of Americans say they’re not on track to retire.

Around 56% of Americans who are working full-time, part-time or are temporarily unemployed feel that they are behind on their retirement savings, according to Bankrate’s September survey. And nearly 25% of workers say they haven’t made contributions to their retirement accounts in at least a year.

Before you determine whether you’re ahead or behind on your retirement savings, it can help to have an overall goal in mind.

In general, you should aim to have 10 times your preretirement income saved by the time you reach age 67, according to Fidelity. That means that, theoretically, someone with a $100,000 salary should have $1 million saved by the time they retire.

That’s about in line with what many Americans are aiming for. The average adult says they’d need around $1.3 million to retire comfortably, according to a recent Northwestern Mutual study.

That number can seem overwhelming at first glance, which is why it can be helpful to break it down into smaller goals. For instance, Fidelity recommends that by age 30, you have the equivalent of one year’s salary saved.

Here are Fidelity’s age-based milestones you can use to track your progress:

• By age 30: 1x your income
• By age 40: 3x your income
• By age 50: 6x your income
• By age 60: 8x your income

Not there quite yet? You’re not alone. In fact, here’s how much Americans actually have saved for retirement by age:

One way to get on track is to focus on your savings rate. This is the percentage of your pretax income that you put toward your retirement savings account such as your 401(k) or Roth IRA. Fidelity recommends a savings rate of at least 15% which includes your and your employer’s contributions if offered.

But you don’t have to start setting aside 15% of your income for retirement all at once. Instead, you can start with what you can afford and work your way up to that savings rate. For example, you could set aside 10% of your annual earnings at first and then increase your contributions by 1% each year until you reach your target.

Remember, this recommended savings timeline isn’t set in stone and can always be adjusted to meet your needs and goals.

“These milestones are aspirational. You likely won’t meet all of them,” Fidelity says in its retirement savings guidelines. “But they can serve as goalposts to help you make a plan to save enough to maintain your lifestyle in retirement.”