How Much Retirement Savings You May Need by Age 67, Based on a Common Rule

If you are nearing retirement and want a rough idea of how much money you should have set aside to stop working, major financial firms such as Fidelity offer guidelines you can compare with your own savings.

It is also important to remember that a 401(k) is only one piece of the retirement puzzle. Many people receive Social Security, and some also have pensions or business income. Here is what to know about aiming for retirement by age 67.

The benchmark: Aim for 10 times your salary by 67

According to Fidelity’s data, having savings equal to 10 times your current salary by age 67 gives your retirement fund a strong chance of lasting through your later years. Still, retirement needs vary widely. What matters most is not just the total amount saved, but how that money will be used. Housing costs, where you live, health insurance, and whether you help adult children all affect retirement cash flow.

What 10 times salary looks like at different income levels

Here are a few examples based on different earnings levels. If you earn $50,000 a year, you would need about $500,000 saved and invested for retirement. At $75,000 in annual pay, the target would be roughly $750,000. Social Security income can add to retirement cash flow, and married couples may need less if both spouses have retirement savings and benefits. These figures are benchmarks, not strict rules you must meet to retire.

What people actually have saved, on average, by 67

Edward Jones also provides data on average retirement account balances across age groups. People ages 45 to 54 typically have about $313,220 saved. Those between 55 and 64 average $537,560, while people ages 67 to 74 average $609,230.

Median savings are different from average savings

The average retirement account balance may not reflect what a typical American worker has put away. Averages are often pulled upward by higher earners who consistently maximize their 401(k) contributions. A more useful measure is the median, which shows the midpoint: half of retirees have more saved and half have less. That number is usually a better reflection of the typical worker.

If you are behind, there are still ways to retire

If you have not reached your target by age 67 but want to leave the workforce, there are still options. Missing Fidelity’s suggested number does not automatically mean retirement is out of reach.

Many retirees reduce their hours, take a less demanding job, or choose work that provides some social connection and a modest paycheck to supplement Social Security and withdrawals. Some also downsize their home or move to a lower-cost area. In other cases, talking with family can help determine whether an arrangement such as living with an adult child could make retirement possible.

If you are ahead, protect what you have saved

Even people who are on track or ahead with retirement savings need to preserve their nest egg. That means creating a withdrawal strategy that supports income while keeping taxes as low as possible. A financial advisor can help you choose a withdrawal rate that balances enjoying retirement with making sure your savings last for decades.

Retirement success depends on many factors

Retirement is highly personal. Someone who budgets carefully and keeps spending low may be able to retire with less savings than a person with more expensive tastes or higher expenses. The best way to judge your own situation is to run the numbers with a financial advisor and accountant under different scenarios. That can help you decide whether your retirement plan is truly realistic.

The bottom line

Retirees face many expenses, and moving from a salary to a fixed income can be difficult. Instead of regular paychecks, every withdrawal from a 401(k) can make savings feel more limited. Still, with a solid plan, retirement can be financially secure even if you have made mistakes along the way.

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