Quick context before the detail: quiz: is your retirement savings on track at age 50 to 55? sits at the intersection of a few real-world decisions most readers face at some point. Here is a clear summary of what is going on, and why it matters.
For many 50-year-olds, the magic number to retire feels like a moving target. If you plan on retiring at 65, you still have a decade or more to build the nest egg you’ll need to live comfortably.
But knowing where you stand today is the only way to plan for tomorrow. For some, a benchmark is confirmation that they are on track; for others, it’s a reminder to step up their efforts. Moreover, it could be a vital wake-up call.
To help you find your footing, JPMorgan crunched the numbers to create a retirement savings benchmark based on age and income. This model assumes a retirement age of 65, an annual gross savings rate of 5%, a portfolio of target-date funds and a retirement lasting 35 years.
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|
Household Income |
Target Savings by Age 50 |
Target Savings by Age 55 |
|
$80,000 |
$355,000 |
$450,000 |
|
$100,000 |
$430,000 |
$585,000 |
|
$150,000 |
$615,000 |
$840,000 |
|
$200,000 |
$775,000 |
$1.065 million |
|
$250,000 |
$980,000 |
$1.345 million |
|
$300,000 |
$1.29 million |
$1.75 million |
Saving for retirement involves many moving parts beyond your 401(k) or IRA balance. Your debt load, health care strategy and the actions you take today all dictate your future security.
Not sure if your retirement savings are truly on track? Take our quiz to see where you stand and what your next move should be.
