Here’s what experts say are the best ways to figure out if you’re actually behind — and how much you might need to catch up.
Plenty of people feel like they are behind on their retirement savings. But what exactly does “behind” mean?
More than half, 56%, of American adults in the workforce say they are behind where they should be when it comes to saving for their retirement, including 37% who reported feeling “significantly behind,” according to a new Bankrate survey. Nearly a third say they would need $1 million or more to retire comfortably.
Here’s how experts say you can figure out if you’re actually behind — and what you can do to catch up.Online tools can provide points of comparison
Adults may feel behind because they haven’t reached “these goals in their minds as either rules of thumbs or points of comparison” that they’ve set for themselves based on what they read online, said certified financial planner Lazetta Rainey Braxton, co-founder and co-CEO of virtual advisory firm 2050 Wealth Partners.
Braxton, a member of the CNBC Financial Advisor Council, pointed to the “numerous calculators” available online to help investors gauge how much they might need, factoring in both ongoing lifestyle expenses and those that may increase in retirement, such as medical costs. The latter can be significant: According to Fidelity, the average retired couple age 65 this year may need around $315,000 saved to cover health-care expenses in retirement.
Brokerage firms such as Fidelity and T. Rowe provide benchmarks to help clarify the path to retirement. The benchmarks provide different age milestones and a target for how much to save.
For example, according to Fidelity’s guide, you should aim to have twice your starting salary saved by the age of 35, and 10 times your starting salary by the age of 67.
