The mid-50s is retirement crunch time. You still have time to build your nest egg, but by now you should have a clear vision of what your golden years will look like. Will you age in place or relocate? Do you plan to keep working, or will you pivot to a hobby full-time?
Every choice carries a price tag. To help gauge where you stand, JPMorgan crunched the numbers to create retirement savings benchmarks based on age and income. This model assumes a retirement age of 65, an annual gross savings rate of 5%, a portfolio of target-date funds and a retirement lasting 35 years.
|
Household Income |
Target Savings by Age 55 |
Target Savings by Age 60 |
|
$80,000 |
$450,000 |
$550,000 |
|
$100,000 |
$585,000 |
$745,000 |
|
$150,000 |
$840,000 |
$1.065 million |
|
$200,000 |
$1.065 million |
$1.36 million |
|
$250,000 |
$1.345 million |
$1.72 million |
|
$300,000 |
$1.75 million |
$2.25 million |
Beyond funding your lifestyle, your number should account for the unexpected costs, specifically health care and long-term care. While you may be healthy now, needs change as you age.
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There is also the reality that you could be forced to exit the workforce earlier than planned due to illness or the need to care for a loved one. Now is also the time to consider your estate and what you wish to leave behind versus what you want to use while you’re here.
With so many moving parts, you may think your savings are on track, but are they? Take our quiz to see if you are on track, need alignment or are off course.