Are You On Track to Save What You’ll Need for Retirement?
This single question may be the most common question people ask financial advisors. The answer though is a largely personal one; dependent on your age, income level, and lifestyle during retirement. According to JPMorgan Asset Management’s 2016 Guide to Retirement, someone age 45 with an annual household income of $100,000 should currently have savings equal to 3.4x his or her salary. Someone age 60 bringing in the same amount of income should have 7.3x that amount in savings. Another way to look at it is every $1,000,000 in invested retirement savings provides between $40,000 to $50,000 (adjusting for inflation) in income per year during retirement. These numbers can seem daunting, especially considering the variability of markets and policies regarding taxation, savings, and benefits that is largely outside an investor’s control.