Are you on track to actually retire?
Savings benchmarks based on age and income can offer a quick assessment — but you shouldn't entirely base your plan on them.
To pull out a few examples, JPMorgan Asset Management's 2016 Guide to Retirement reports that someone age 40 with an annual household income of $100,000 should have 2.6 times that amount put away for retirement. By age 60, the bank estimates, that multiple should be 7.3. At Fidelity, the latest "savings factors" released in fall 2015 call for a 40-year-old worker to have saved an amount equivalent to three times his salary, and by age 60, eight times salary. (See charts below for others.)
Hitting those multiples can seem like a tall order. Despite swelling ranks of 401(k) millionaires, many people have saved far less. A quarter of workers say their family has less than $1,000 in savings and investments, according to the 2016 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald & Associates. Only 14 percent said their family has set aside $250,000 or more.