Are you saving enough for retirement?

Are you saving Enough for retirement?

Knowing how much to save for retirement is a key question in planning. As your advisor we utilize a variety of tools, strategies and fact-finding questions to help determine what that number may look like for you. According to research by J.P Morgan Asset Management, you can use a simple, fast way to get a rough idea of whether you’re on track and saving enough.

Consider this, at various ages, your nest egg should be this many times larger than your household income. Based on the report enough means:

Your savings have at least an 80% chance of surviving 30 years in retirement
Your nest egg averages 6% average annual growth
You continue to save 10% of your income yearly until you retire at age 65

According to the chart below, your retirement savings should match a specific percentage of your yearly income, the percentage is a multiple of your income.

Are you saving Enough for Retirement?
At this income:
$50,000		$75,000	$100,000	$150,000	$200,000	$250,000	$300,000
At this age: You'd need this multiple of your income:
35	0.9	1.6	2.0	2.6	3.0	3.4	3.5
40	1.6	2.4	2.9	3.6	4.2	4.6	4.8
45	2.5	3.4	4.0	4.8	5.5	6.0	6.2
50	3.5	4.6	5.3	6.3	7.1	7.7	8.0
55	4.7	6.0	6.9	8.1	9.1	9.7	10.1
60	6.2	7.7	8.8	10.2	11.4	12.2	12.6
65	8.1	10.0	11.3	13.0	14.5	15.5	16.0

Source: J.P. Morgan Asset Management

At age 45, earning a yearly income of $75,000, your target multiple is 3.4 times your income. Your retirement savings should total $255,000 by that point. In comparison, at age 60 earning a yearly income of $75,000, your retirement savings should total $577,500.

An interesting calculation, are you saving Enough for retirement?

Click Here to read the full Guide to Retirement by J.P. Morgan Asset Management
Have questions or concerns about your retirement savings? We are here to help.