Investopedia lists some retirement guidelines that are quite interesting. In particular, here's what they say you should have saved for retirement by given ages:
- By age 30: Accumulate the equivalent of your annual income that year
- By age 40: Three times that income
- By age 55: Seven times
- By age 67: When you say sayonara to the working-stiff life, 10 times your income
A few thoughts here:
- For VERY GENERAL guidelines, these are "ok". They will get you relatively close.
- That said, they make one HUGE assumption: that the income you have now is what you'll need in retirement. That is not correct. My income was a few times higher than what I actually needed annually to retire.
- To know the true numbers, you have to do your own retirement math. Develop your own retirement budget, then look at sources of income and assets that will help you meet your needs. Then plan a savings effort to hit those by the date you want to retire.
Those are my thoughts on general retirement guidelines. Do you have anything to add?