Am I On Track To Retire? A Breakdown By Age
09/26/2023
Whether you are in the early stages of your career or getting close to retirement, a question you’ve probably asked yourself is, “Am I on track to retire?”
Financial experts talk extensively about the importance of investing young in order to give your money more time to compound. While this is true, there are additional variables at play when gauging if you are on track. Your intended retirement age, lifestyle, investment performance, pension and/or social security income, other savings, debt, and health all factor into answering whether you need to increase your contribution amounts and/or adjust your investments.
Setting a goal can be a moving target as your situation changes over time, but it’s important to check the progress of your accounts to keep them aligned with your expectations. Below are some key numbers to help guide you. Please keep in mind that these are general numbers that are not unique to your specific situation, and the rates of return do not account for market volatility.
To reach the $1 million mark by age 59, your goal is to have saved:
$34,285 by age 30
$81,173 by age 35
$154,987 by age 40
$271,187 by age 45
$454,114 by age 50
$742,085 by age 55
To reach the $2 million mark by age 59, your goal is to have saved:
$63,237 by age 30
$149,720 by age 35
$285,865 by age 40
$500,190 by age 45
$837,589 by age 50
$1,368,735 by age 55
To reach the $5 million mark by age 59, your goal is to have saved
$158,472 by age 30
$375,201 by age 35
$716,384 by age 40
$1,253,488 by age 45
$2,099,017 by age 50
$3,430,083 by age 55
Example one assumes that you start investing $4,500 per year at age 25 and get a 9.5% rate of return per year.
Example two assumes that you start investing $8,100 per year at age 25 and get a 9.5% rate of return per year.
Example three assumes that you start investing $20,800 per year at age 25 and get a 9.5% rate of return per year.
Please contact me to discuss your specific situation and goals. These formulas are not meant to predict the future, and this is not a guarantee of performance. I never charge for meetings or advice; I only get paid directly from accounts that I manage.