By age 50, retirement-plan provider Fidelity recommends having at least six times your salary in savings in order to retire comfortably at age 67. By age 55, it recommends having seven times your salary. Are you on track?
According to Fidelity, most 50-something Americans aren't. As of the second quarter of 2018, those between 50 and 59 years old with a 401(k) had an average balance of $174,200 and were contributing 10 percent of their paychecks. On average, employers were matching 4.9 percent, putting the total savings rate for this group at 14.9 percent.
While this group has a high savings rate, by Fidelity's rule, their nest egg may not be big enough: If you earn $50,000 a year, you should have $300,000 in savings by age 50. If you earn $75,000 a year, you should have $450,000 in savings by 50.
On the bright side, Fidelity reports that Americans aged 50 to 59 are saving more in their 401(k)s than they were five years ago: In 2013, they had an average balance of $128,900.