Fidelity Recommends Retirement Savings Targets by Age

Fidelity, one of the largest investment firms in the United States, has released recommended retirement savings targets based on an individual's age and salary. According to Fidelity, workers should aim to have saved an amount equal to their annual salary by age 30, three times their salary by age 40, six times by age 50, eight times by age 60, and ten times their salary by age 67.

Despite these guidelines, many Americans are struggling to save adequately for retirement. A recent survey found that 28% of workers have no retirement savings at all, while 39% are not currently contributing to a retirement fund. Furthermore, 30% of respondents do not believe they will ever be able to retire comfortably.

Why this matters: Retirement readiness is a critical issue affecting millions of Americans. Inadequate savings can lead to financial hardship in later years and place a burden on social safety nets.

To improve retirement readiness, experts suggest a collaborative effort involving employees, employers, and the government. For workers, focusing on budgeting, taking full advantage of employer matching contributions, and seeking professional financial advice can help boost savings. Employers can play a role by incorporating more retirement-focused features into their benefits packages and regularly reviewing their investment lineups.

The government also has a part to play, particularly when it comes to Social Security. Depending on individual circumstances, some may benefit from delaying Social Security benefits, while others may need to claim them earlier. "The government can play a role in Social Security, with options to delay or take benefits early depending on individual circumstances," the article notes.

As concerns about retirement readiness continue to grow, Fidelity's recommended savings targets serve as a useful benchmark for workers to assess their progress. By working together, employees, employers, and policymakers can help ensure that more Americans are able to enjoy a financially secure retirement.

Key Takeaways

• Fidelity recommends saving 1x, 3x, 6x, 8x, 10x salary by ages 30, 40, 50, 60, 67.
• 28% of workers have no retirement savings, 39% not contributing to a retirement fund.
• 30% don't believe they'll ever retire comfortably, indicating retirement readiness crisis.
• Experts suggest collaboration between employees, employers, and government to boost savings.
• Delaying or claiming Social Security early can benefit individuals based on circumstances.