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If you are earning $50,000 by age 30, you should have $50,000 banked for retirement. By age 40, you should have **three times your annual salary**. By age 50, six times your salary; by age 60, eight times; and by age 67, 10 times. 8 If you reach 67 years old and are earning $75,000 per year, you should have $750,000 saved.

So, to answer the question, we believe having **one to one-and-a-half times your income saved for retirement by age 35** is a reasonable target. It's an attainable goal for someone who starts saving at age 25. For example, a 35-year-old earning $60,000 would be on track if she's saved about $60,000 to $90,000.

Many financial advisors suggest using the **15% rule** as a starting point when an individual begins saving for retirement at 30. Under the 15% rule, individuals in their 30s who want to retire by their late 60s should set aside approximately 15% of their gross annual salary towards retirement each year.

Retirement-plan provider Fidelity recommends having **the equivalent of your salary saved by the time you reach 30**. That means if your annual salary is $50,000, you should aim to have $50,000 in retirement savings by 30.

Most financial planning studies suggest that the ideal contribution percentage to save for retirement is **between 15% and 20% of gross income**. These contributions could be made into a 401(k) plan, 401(k) match received from an employer, IRA, Roth IRA, and/or taxable accounts.

The maximum salary deferral amount that you can contribute in 2019 to a 401(k) is **the lesser of 100% of pay or $19,000**. However, some 401(k) plans may limit your contributions to a lesser amount, and in such cases, IRS rules may limit the contribution for highly compensated employees.

Average 401k Balance at Age 22-24 – **$24,987**; Median – $10,361.

Can I retire on $500k plus Social Security? **Yes, you can**! The average monthly Social Security Income check-in 2021 is $1,543 per person.

Recommended 401k Amounts By Age

Middle age savers (35-50) should be able to become 401k millionaires around **age 50** if they've been maxing out their 401k and properly investing since the age of 23.

You should have **two times your annual income saved by 35**, according to a frequently cited Fidelity retirement chart.

**It is never too late to start saving money you will use in retirement**. ... Even starting at age 35 means you can have more than 30 years to save, and you can still greatly benefit from the compounding effects of investing in tax-sheltered retirement vehicles.

You may be starting to think about your retirement goals more seriously. By age 40, you should have saved a **little over $175,000** if you're earning an average salary and follow the general guideline that you should have saved about three times your salary by that time.

Save Enough to Provide Sufficient Income

If you earn $400 a week, saving 10 percent will cover it, 5 percent if you make $800 a week. The amounts increase if you're starting out later in life. You'll need to save $67.50 per week if you start at age 35 and **$125 per week** if you're just starting a 401(k) at age 45.

It may be possible to retire at 45 years of age, but it will depend on a variety of factors. If you have $500,000 in savings, according to the 4% rule, you will have access to roughly $20,000 **for 30 years**.

Typically, advisors project an average rate of return for those funds invested in a 401(k) plan over the next 20 to 30 years to be somewhere **between 5 to 8%**. Unfortunately, for numerous reasons, this doesn't mean a 401(k) will actually realize a 5-8% return.

It's advisable to add one year of gross salary saved every five years. So when you're 30, you'll want to have saved one year's worth of your salary; at age 35, you'll want to have saved **two years' worth of your salary**; and at 40, you'll want to have saved three years' worth of your salary.

For example, if you don't start investing for retirement until the middle of your career, but then max out your 401(k) contribution annually for 20 years, with an average **rate of return of 7%**, you'd wind up with a portfolio worth $855,371. With an 8% rate of return, that would grow to $963,747.

The maximum contribution limit in 2021 is **$19,500**. Expect the maximum contribution amount to go up $500 every two or three years. Further, to achieve financial independence, everyone should be saving way more than $19,500 a year! Therefore, you can't save too much in you 401(k).

The 4% rule assumes **your investment portfolio contains about 60% stocks and 40% bonds**. It also assumes you'll keep your spending level throughout retirement. If both of these things are true for you and you want to follow the simplest possible retirement withdrawal strategy, the 4% rule may be right for you.

Is a million dollars enough money to ensure a financially secure retirement today? A recent study determined that a $1 million retirement nest egg will **last about 19 years on average**. Based on this, if you retire at age 65 and live until you turn 84, $1 million will be enough retirement savings for you.

No. **You can retire comfortably on a sum like $600,000** if you take the right steps (and don't confuse “comfortable” with “luxurious”). With the right financial choices, a $600,000 nest egg might be enough for an adequately funded retirement without depleting your savings at a dangerous rate.

Fidelity Investments reported that the number of 401(k) millionaires—investors with 401(k) account balances of $1 million or more—reached **233,000** at the end of the fourth quarter of 2019, a 16% increase from the third quarter's count of 200,000 and up over 1000% from 2009's count of 21,000.