Retirement Savings, are you on track?

CoffeeBeen · October 2012

https://usatoday30.usatoday.com/money/business/story/2012/09/12/fidelity-issues-new-retirement-savings-guidelines/57756922/1?csp=34money&utm_source=dlvr.it&utm_medium=twitter&dlvrit=110940

Someone just posted this on my Facebook, Fidelity is recommending:

by age 35, savings should = your annual salary
by age 40, savings should = 2x your annual salary
by age 50, savings should = 4x your annual salary
by age 60, savings should = 6x your annual salary
by retirement, savings should = 8x your annual salary

Are you on track?

missmuffin87 · October 2012

Not even close. Good thing the concept of retirement for our generation is a joke. I be workin till I'm dead.

Fianschneid · October 2012

Wow. This actually makes me feel a lot better. I always felt really behind (infact, I had a mini panic attack about savings last night) but at 33, I have about $2,000 over my annual salary saved.

Smootchy · October 2012

Yep!!

Only because my income is zero at the moment from being a SAHM....

...starts sweating...

MrsWindyCity · October 2012

I'm 31 and I have about 75% of my salary. DH probably has a similar amount, but he makes way more than me, so there is no chance he's going to make it to 100% of his salary by 35 (he's 31, too).

ETA: This is purely money I have in my Fidelity/Roth. Our other savings will eventually become retirement savings, but I don't consider it that yet since some of it is earmarked for our "forever" house, etc.

Wine O Mite · October 2012

Surprisingly, I'm not far off for the 35 year old goal and should be right on by the time I get to 35 (3.5 years).

However, I work for a small company and have a Pension, which is awesome because I don't have to contribute anything. I am fully vested in that currently.

I do have a Roth IRA set up to compliment the pension and I contribute to that on my own.

I'm doing fine with Retirement savings...regular savings is another question.

CoffeeBeen · October 2012

I'm in my late twenties and we have our salaries worth... but it's the same money that we consider using for home renovations, new cars, etc. This kind of information makes me not want to spend another dime ever again.

lildevil968 · October 2012

Not even close. According to this I will have to work until I die, and then work some more after death.

stilts1 · October 2012

I assume this takes into account 401K, cash savings, etc? Then yes, I'm on track.

MirandaHobbes · October 2012

I am about on track.. but the 35-40 jump worries me. I have 1x my salary now at 33, I highly doubt I'll be able to double that in 7 years, unless I substantially increase my contributions- which I understand is the norm, but dang, times are tight.

DH scares the crap out of me. He's turning 40 and has basically nothing in his retirement. He started grad school late in life, has a mountain of debt, and had to pull from his 401K a few years ago when he was unemployed for a year. Pretty typical story these days.

momofmanyinthemitten · October 2012

Seeing as DH just started his first real job after years of medical training, no. We're saving 20-25% of his income now. He may never get to retire...

hmp1 · October 2012

We are pretty close. But if we have another kid and do private school, not sure we will make the 40 goal.

hcmamm1 · October 2012

lucky for me i have about 2-3x my salary.

but unlucky for me, DH does not save anything, so i will have to share my retirement with him.

MrsGoodkat · October 2012

Nope. We are just trying to get ahead living on one income.

LuckyDad · October 2012

Someone really needs to do an adjusted chart of this for those of us who weren't done with our educations at the age of 22.

The short answer is "no".

andyyougoonie · October 2012

No, not even close. That f?cking sucks since I've been contributing for like 8 years. If the stock market didn't keep f?cking me over, I would be doing great!

MrsMommyQ · October 2012

We are on track BUT we are spending a lot of what have right now bc we bought a house and are renovating some parts of it.

Also, DH gets a pension (cop) so maybe its bad but we dont worry as much.

KJmashup · October 2012

No, not even close.

klondikebar · October 2012

I'm almost afraid to say it, but we're way ahead. Then again, we did make some risky business investments to get where we are.

zeptattoo · October 2012

I am for the 35 year mark, but probably not 40.

catycate · October 2012

Nope, not even a little bit. I stay at home now (and hadn't saved anything from my 10 years of working) and DH has a 401K, but we had to draw from it while he was out of work. Right now, we are working on emergency savings and then we will begin to contribute again.

hetachu · October 2012

I'm doing pretty well....DH will be eating cat food

CoffeeBeen · October 2012

IrishCoffee7:
CoffeeBeen:
I'm in my late twenties and we have our salaries worth... but it's the same money that we consider using for home renovations, new cars, etc. This kind of information makes me not want to spend another dime ever again.
Being in financial service I just have to say this is the biggest reason people who actually save successfully fail to meet their goals. Not telling anyone what to do with their money but at the same time if you can mentally set aside your retirement savings as something that unless someone's life is on the line you will NEVER EVER touch, you will be way far ahead of a lot of people.

You're 100% right. We should have it more delineated. I think that we're sort of ok because in addition to the salary-worth of money saved, we also have another salary-worth with a financial investor, plus our pensions. So, technically our financial investor and our pension reps have the actual retirement set aside. I should decide what part of my savings I want to put into retirement though, I've just been putting it off.

Fianschneid · October 2012

Inkogneetoh:
Yea, not even close. We don't have a "retirement" account even set up yet. Just regular savings and checking. Neither H or I are financially savvy. Anyone care to help us?

Start by talking to your company's HR department about retirement plans. There's a good chance they offer a 401k or Simple IRA program that they will withdrawl pre-tax from your paychecks. You won't even miss it. They might even match a certain percentage - free money!

Once you get that set up, look for a good financial advisor. S/he can talk to you about your short and long term goals, current savings and how to get where you want to be.

14kgirl · October 2012

I have a bit more than 2x at age 40. Thank goodness DH (then BF) shamed me into contributing more (up to company match at the time) when I was in my mid-twenties. I remember him being so exasperated, like, "You are throwing money away if you don't at least hit the company match %!"

He was right, as usual. Don't tell him I said that.

Deblondie1 · October 2012

Ahh? Nope. Honestly, we never worried about it because we know H is going to retire military. But recently, we have started thinking about it because the reality is that cuts are coming. And by the time he retires those cuts may (most likely will) have an impact on his benefits.

CoffeeBeen · October 2012

IrishCoffee7:
CoffeeBeen:
IrishCoffee7:

CoffeeBeen:
I'm in my late twenties and we have our salaries worth... but it's the same money that we consider using for home renovations, new cars, etc. This kind of information makes me not want to spend another dime ever again.
Being in financial service I just have to say this is the biggest reason people who actually save successfully fail to meet their goals. Not telling anyone what to do with their money but at the same time if you can mentally set aside your retirement savings as something that unless someone's life is on the line you will NEVER EVER touch, you will be way far ahead of a lot of people.

You're 100% right. We should have it more delineated. I think that we're sort of ok because in addition to the salary-worth of money saved, we also have another salary-worth with a financial investor, plus our pensions. So, technically our financial investor and our pension reps have the actual retirement set aside. I should decide what part of my savings I want to put into retirement though, I've just been putting it off.

The issue is you can't wake up one day and decide you want $50 grand moved to a retirement account. It does sound like overall you're on track savings-wise but if you want the benefit of tax-deferred growth it needs to go in to your retirement plan at work or into an IRA, which is limited to $5000 per year in most cases.
So if you have $$ set aside that you know will be retirement money, you should start adding it on an ongoing basis vs planning to do a lump sum.

Sorry I have a boner for this stuff .

Don't apologize! You're right, our finances are sloppier than I want them to be. ::sigh:: Hopefully this reminder gives me the push to consolidate a bit.

insertclevername · October 2012

We are right on track. However, I have not been upping my contributions since LO was born, so I may be behind in 8 years when I turn 40.

Sonadora · October 2012

Yes.

penguingrrl · October 2012

Not even a little. It's a nice theory, but we've been investing in DHs career instead. He graduating with his PhD a few weeks ago and just started a post doc, so it will be a few years before we can even think about retirement. He's 30, I'm 31, so we're way behind. I have no regrets since his field is one that he won't need to worry about retiring due to physical limitations really ever (he's a chemical engineering theorist who does all his work via computer simulations and models) and he would be miserable as a retired person so won't retire until/unless he has absolutely no other option and thankfully will hopefully be a tenured professor, so he will have job security in his older years.

ccm1203 · October 2012

If take into account our combined income / combine retirement funds we are on track. If I just look at my 401K value and my salary I am only at 45%.

LoCarb · October 2012

No where close! From age 35 to 40 you are supposed to dbl your salary retirement fund! And again every 10 yrs. These ppl must never go out. Ever. And maybe still live with their parents.

ASmallWonder · October 2012

Fianschneid:
Wow. This actually makes me feel a lot better. I always felt really behind (infact, I had a mini panic attack about savings last night) but at 33, I have about $2,000 over my annual salary saved.

Same here! DH and I each have an amount close to equal our annual salary (could be slightly higher or lower but nothing major). I started my 401k late but was lucky enough to work for a place that matched my first 6% at 100% and also contributed an amount equal to 6% of my salary into a retirement fund every year for several years until they got bought out and went cheap on us :-p

FezzesAreCool · October 2012

Aahahahahahahahahaaaaaa!

::catches breath::

AHAHAHAHAHAHAHAHAAAAAAAA!

no.

NerdyMama2 · October 2012

Nope!

quidditchcapn1120 · October 2012

No. I have continuously been in school since high school and have yet to have a "real" job. I'm quickly approaching 30. Yikes. Our financial advisor is great though so hopefully he'll be able to get us on track after residency is over in 2014.

mom2pottamus · October 2012

I SAH but worked until 2 years ago when I was laid off so I do have considerable retirement and a pension. We are using MH's retirement to fund both of us, and we are on track as he also gets a pension, so yes for now.

Wufroggy79 · October 2012

Probably at about half of what it should be. Very little has been going to retirement/savings since DD was born. I'm just glad I have one of the few jobs in America that still offers a pension.