The Seven Ways To Save More For Retirement In Your 50s

Know how much you’ll need to retire

By age 35, you should have two times your annual salary saved up for retirement, according to the latest numbers from Fidelity Investments.

Five years later, you should have three times your annual salary. And on and on, until you reach 67 when you should have 10 times your annual salary saved.

Laid out visually, the Fidelity guidelines for individuals look like this:

  • By 35, save two times your gross annual salary
  • By 40, save three times your gross annual salary
  • By 45, save four times your gross annual salary
  • By 50, save six times your gross annual salary
  • By 55, save seven times your gross annual salary
  • By 60, save eight times your gross annual salary
  • By 67, save 10 times your gross annual salary

Know how much to save when you’re starting later in life

As we noted earlier, most people don’t start thinking about saving until their 40th birthday.

This MarketWatch story details how much you have to save each month to retire a millionaire when you are starting later in life. Their number assume you start with $10,000 invested and your portfolio grows by 7% every year.

It becomes really easy to see the power of saving early!

  • 25 year olds have to save a little over $300 a month. That’s just $10 a day for the rest of their working lifetime.
  • 35 year olds have to save $775 a month.
  • 45 year olds have to save $1,850 a month.
  • 55 year olds have to save $5,700 a month.
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