Fidelity 401k: How much money should you have saved in your 401 (k) plan at age 50?
Fidelity 401k: If when you retire you want to maintain a lifestyle similar to what you have while you work, it is best to start saving as soon as possible. How to know if you are doing well? Find out how much money you should have in your 401 (k) plan at age 50.
Your salary, six times
If you want to retire comfortably at age 67, it is recommended that you have at least six times your salary when you turn 50, according to a report from the Fidelity 401k company.
With that plan in mind, at age 55 you should already have your salary multiplied by seven.
However, most Americans do not meet these requirements. According to Fidelity 401k numbers, people aged 50 to 59 have an average balance of $ 174,200 in their 401 (k) plan and contribute 10% of their monthly checks.
This is the amount you should have saved at age 50:
– If you earn 50 thousand dollars a year, 300 thousand dollars.
– If you earn 75 thousand dollars a year, 450 thousand dollars.
How to save for retirement
To begin, it is recommended to save 15% of your income in a retirement account.
“We believe that if you save 15% throughout your career, you will have enough money to maintain lifestyle during retirement,” says Katie Taylor, vice president of leadership at Fidelity 401k Investments, on CNBC’s Make It site.
On the other hand, if you want to retire at age 67, which is not easy, you should have saved at least 10 times your final salary.
When hired, it is advisable to find out about the benefits of the 401k plan, what type it is and, above all, to register as soon as possible.
In case you do not have access to one of these plans, do not worry, since there are other possibilities, such as IRA, traditional or Roth accounts, a health savings account (HSA, for its silgas in English) or a common investment account.
A negative outlook
A GoBankingRates site report that takes into account all Americans, not just those with a 401 (k) plan, revealed that 40% of people between 45 and 54 years old do not have any savings for retirement.
If you’re one of those people, remember that it’s never too late to start saving.