Is your retirement on track?
Of course, if your salary increases in the future, you'll need to make adjustments. The numbers aren't foolproof, but these rates have a 90 percent chance of success, say the authors. They ran each combination of age, income level and savings rates through 2,000 market scenarios in "Monte Carlo simulations" -- altogether 72 million simulations -- to get these numbers. The portfolios they used in their research resembled those of target-date funds, which become increasingly conservative as retirement draws near.
Notice that the savings rate trends upward as you get older. That's why it's easier to meet your retirement goals if you get an early start. But as the chart shows, it's never too late to get started.
 |
| National savings rates |
|
| 25 |
$20,000 |
5.8 percent |
1.6 percent |
| 25 |
$40,000 |
8.2 percent |
0.78 percent |
| 25 |
$60,000 |
10 percent |
0.55 percent |
| 25 |
$80,000 |
11.2 percent |
0.4 percent |
| 30 |
$20,000 |
7 percent |
1.65 percent |
| 30 |
$40,000 |
10 percent |
0.79 percent |
| 30 |
$60,000 |
11.8 percent |
0.54 percent |
| 30 |
$80,000 |
13.6 percent |
0.42 percent |
| 35 |
$20,000 |
8.6 percent |
1.75 percent |
| 35 |
$40,000 |
12.2 percent |
0.86 percent |
| 35 |
$60,000 |
14.6 percent |
0.55 percent |
| 35 |
$80,000 |
16.4 percent |
0.43 percent |
| 35 |
$100,000 |
17.6 percent |
0.34 percent |
| 40 |
$20,000 |
10.2 percent |
1.67 percent |
| 40 |
$40,000 |
14.8 percent |
0.86 percent |
| 40 |
$60,000 |
17.6 percent |
0.57 percent |
| 40 |
$80,000 |
19.8 percent |
0.42 percent |
| 40 |
$100,000 |
21.4 percent |
0.35 percent |
| 45 |
$20,000 |
12.4 percent |
1.76 percent |
| 45 |
$40,000 |
18 percent |
0.9 percent |
| 45 |
$60,000 |
21.4 percent |
0.59 percent |
| 45 |
$80,000 |
24 percent |
0.45 percent |
| 45 |
$100,000 |
26.2 percent |
0.37 percent |
| 45 |
$120,000 |
28.2 percent |
0.31 percent |
| 50 |
$20,000 |
15 percent |
1.87 percent |
| 50 |
$40,000 |
22 percent |
0.97 percent |
| 50 |
$60,000 |
26.2 percent |
0.64 percent |
| 50 |
$80,000 |
29.8 percent |
0.48 percent |
| 50 |
$100,000 |
32.2 percent |
0.39 percent |
| 50 |
$120,000 |
35 percent |
0.33 percent |
| 55 |
$20,000 |
18.6 percent |
2.11 percent |
| 55 |
$40,000 |
27.2 percent |
1.04 percent |
| 55 |
$60,000 |
32.6 percent |
0.71 percent |
| 55 |
$80,000 |
36.6 percent |
0.53 percent |
| 55 |
$100,000 |
40.2 percent |
0.43 percent |
| 55 |
$120,000 |
43.6 percent |
0.36 percent |
| 60 |
$20,000 |
23.8 percent |
2.39 percent |
| 60 |
$40,000 |
34.4 percent |
1.23 percent |
| 60 |
$60,000 |
41.2 percent |
0.81 percent |
| 60 |
$80,000 |
46.8 percent |
0.61 percent |
| 60 |
$100,000 |
51.4 percent |
0.5 percent |
| 60 |
$120,000 |
55.4 percent |
0.41 percent |
|
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