Retirement Savings: How Do You Compare?

For most people, “retirement security” means money — specifically savings. As a TCDRS member, you might be better off than most Americans when it comes to your retirement savings.

By Leah Golden

Tally up your retirement savings to see how you compare to other Americans. Remember to include your TCDRS account balance. (You can see it when you sign in to TCDRS.org.) Add to that any retirement accounts — such as an IRA, 401(k) or 457 — as well as other savings you have earmarked for retirement.

Keep in mind that these are just guidelines and averages. On an individual level, everyone’s retirement needs and expectations are different.

Savings Goals and Guidelines

• In your 20s
  Now’s the perfect time to start saving. You don’t have to start big — you just have to start.
  Average savings for ages 20-29: $10,500
  Age 30 Goal: One times your annual income
  
  

• In your 30s
  Average savings for ages 30-39: $38,400
  Age 40 Goal: Three times your annual income
  Running behind? Increase the amount you save. Age 67 is the average target retirement age. That gives you decades to maximize your savings.
  
  

• In your 40s
  Average savings for ages 40-49: $93,400
  Age 50 Goal: Five times your annual income
  Running behind? Consider reducing your spending so you can save more or consider working longer.
  
  

• In your 50s
  Average savings for ages 50-59: $160,000
  Age 60 Goal: Seven times your annual income
  Running behind? Make catch-up contributions to an IRA or 401(k), in addition to reducing your spending.
  
  

• In your 60s
  Average savings for ages 60-69: $182,100
  Age 70 Goal: Eight times your annual income
  Running behind? Catch-up contributions and reduced spending may help. You can also reassess your retirement lifestyle, or work part time in retirement.
  
  

According to a TD Ameritrade survey, when asked what advice they would give their younger selves, most of those aged 40 to 79 said: Start saving sooner.

Additional sources: Fidelity (averages), Ally.com (goals)

Personal Finance