Retirement is the dream, isn’t it? A time to leave behind the daily grind, travel, relax, & spend more time with loved ones. But the path to that dream can feel uncertain, especially when it comes to saving enough to fund the lifestyle you’ve worked so hard to achieve. It’s a concern shared by many—what if your savings fall short, or worse, run out before you’re ready?
For many Americans, the figure of $1.5 million is seen as a benchmark for a comfortable retirement. But is that number right for everyone? Probably not. Your unique circumstances, from career choices to personal goals, shape what you truly need for your retirement years. The key to building confidence in your retirement plan is to understand where you stand today and where you want to be. Our team recommends starting with savings milestones based on your age.
By Age 30: Aim to have saved the equivalent of your annual salary. Starting early allows you to take full advantage of compound growth.
By Age 40: Try to have three times your salary saved. Balancing growing expenses while maintaining steady contributions is key at this stage.
By Age 50: Work toward saving six times your salary. This is a good time to focus on reducing debt and maximizing retirement contributions.
By Age 60: Aim for eight times your salary. Start thinking about your retirement timeline and whether working part-time might fit into your plans.
By Age 67: Ideally, you’ll have 10 times your annual salary saved if you’re planning to retire around Social Security’s full retirement age. For example, a $100,000 annual salary would mean a goal of $1 million.
These guidelines are not rigid rules but serve as helpful benchmarks. After all, everyone’s journey is different, and your savings trajectory will depend on factors like when you started saving, your income growth, and how your priorities evolve.
Beyond the numbers, the lifestyle you envision for retirement plays a major role in determining how much you’ll need. Do you dream of traveling the globe, or are you planning to downsize and simplify? These choices shape your financial goals as much as any milestone. For instance, retiring in a high-cost city may require a much larger nest egg than settling into a quieter, low-cost town. If international travel is in your future, budgeting for it in advance can ensure those dreams don’t stretch your finances too thin.
Another critical piece of the puzzle is timing. When you choose to retire has a direct impact on how much you need to save. Retiring earlier means you’ll need your savings to last longer, particularly if there’s a gap between leaving the workforce and the age you qualify for Social Security or pension benefits.
Of course, retirement planning isn’t just about the big picture; it’s also about the small, steady steps you take along the way. The earlier you start saving, the more powerful the effect of compound interest becomes, allowing your money to grow exponentially over time. Even small contributions in your 20s and 30s can make a huge difference by the time you’re ready to retire. If your employer offers a retirement plan with matching contributions, make it a priority to contribute enough to get the full match—it’s essentially free money for your future.
When you finally retire, your income will likely come from a mix of Social Security benefits, pensions, and personal savings. Knowing how much you can rely on each source and comparing it to your projected expenses will help you identify any gaps. If those gaps exist, creating a plan to close them—whether by adjusting your savings rate or considering part-time work in retirement—can provide peace of mind.
Retirement planning is not about chasing an arbitrary number; it’s about creating a roadmap for the life you want. The sooner you start asking questions and seeking clarity, the better prepared you’ll be to make informed decisions about your future. And while the process may seem overwhelming at times, you don’t have to go it alone. Working with a financial professional can help you clarify your goals, navigate the complexities of planning, and develop a personalized strategy that makes your dream retirement a reality.
The best time to start planning for retirement is yesterday, but the second-best time is today. Taking even small steps now can bring you closer to the retirement you deserve—a future that’s not just financially secure, but one where you can truly thrive.
The content is developed from sources believed to provide accurate information. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. Consult with a financial professional regarding your specific situation.
Ari Baum, CFP® is the Founder and CEO of Endurance Wealth Partners, with over 25 years of experience in the Financial Services industry. He brings his in-depth experience to Conceive. Believe. Achieve. for his clients.
Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC. Brokerage and Advisory accounts carried by Wells Fargo Clearing Services, LLC.
Ari Baum, CFP®
