Average Retirement Savings Balance by Age (money.usnews.com)

submitted 4 months ago by sugar_in_your_tea@sh.itjust.works to c/fire@lemmy.ml

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Here are just the number for all of you degenerates who just want some milestones for your spreadsheets.

Average total retirement savings by age:

<35 - $49,130
35-44 - $141,520
45-54 - $313,220
55-64 - $537,560
65-74 - $609,230
=75 - $462,410

Average 401k balance by age:

<25 - $5,236
25-34 - $30,017
35-44 - $76,354
45-54 - $142,069
55-64 - $207,874
65 and older - $232,710

And retirement savings targets from various advisors:

Fidelity:

1x by 30
3x by 40
6x by 50
8x by 60
10x by 67

Rowley:

1x by 35
5x by 50
7x by 70

Anyway, do you like metrics like these?

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[-] sugar_in_your_tea@sh.itjust.works 3 points 4 months ago

It's also averaged across the US, so it's doubly useless. I mostly posted it as an interesting anecdote.

But if you want something similar, just look up average retirement savings in your country. The income multiplier should work across countries though (the 1x, 3x, etc).

That said, if your goal is early financial independence, you probably have better metrics anyway. I just use stuff like this to pad out my milestones, since it's fun to have more things to celebrate.

If you want something more generally applicable (e.g. calculate time to financial independence), I'm happy to make a post about what I'm doing.

[-] viking@infosec.pub 3 points 4 months ago* (last edited 4 months ago)

Ah ok, gotcha. I've set my own milestones based on a relative savings rate in such a way that x% monthly savings equate to y years of earlier retirement. Never thought of doing it in terms of multiples of annual income since those include my savings rates, and my actual cost of living are significantly below my income.

[-] sugar_in_your_tea@sh.itjust.works 3 points 4 months ago

Yeah, the multiples thing is not a great way to estimate early retirement because it assumes your retirement spending is directly related to your employment income. That's true for many people with traditional retirement plans though, and it's certainly easier than estimating expenses, so I guess there's merit to it.

Anyway, I just think it's an interesting set of milestones to track. Like, "oh, I'm where I should be at X years old, so I'm Y years ahead of 'normal' retirement." But it doesn't impact my retirement planning one bit though.