Retirement rules of the road

Four key goals to help you stay on track to retirement—your “someday.”

Get the answers to four key retirement questions in the articles below—plus an inside look at our retirement math.

How much should you save each year for retirement?

How much should I save for retirement?
Aim to save at least 15% of your income annually—start as soon as you can.

How much do you need to save for retirement?

Am I on track?
Try to save at least 1x your salary by the time you’re age 30, 3x by 40, 6x by 50, 8x by 60, and 10x at 67.

How much of your retirement income needs to come from savings?

Where will my retirement income come from?
Plan for about 45% to come from savings, the rest from Social Security.

How can you make your savings last?

How can I make my retirement savings last?
Limit withdrawals to no more than 4% to 5% annually, adjusted for inflation.

Retirement math Under the hood:
retirement math

How the key concepts of our retirement rules of the road work together.

Road trips: real life stories Road trips:
real life stories

Meet some investors on their journey to retirement—and one who is already there.

Get all retirement Viewpoints

Saving for retirement

Learn about tax-smart strategies to help grow your money—so you can achieve your goals.

  • Savings basics
  • Strategies by age
  • Pitfalls to avoid
  • Savings tools
  • Products to consider

Getting ready to retire

Learn how to turn your savings into a lifetime income stream you can't outlive.

  • Income basics
  • Strategies by age
  • Pitfalls to avoid
  • Income tools
  • Products to consider
This information is intended to be educational and is not tailored to the investment needs of any specific investor.
Fidelity’s suggested total pretax savings goal of 15% of annual income (including employer contributions) is based on our research, which indicates that most people would need to contribute this amount from an assumed starting age of 25 through an assumed retirement age of 67 to potentially support a replacement annual income rate equal to 45% of preretirement annual income (assuming no pension income) through age 93. The income replacement target is based on the Consumer Expenditure Survey 2011 (BLS), Statistics of Income 2011 Tax Stats, IRS 2014 tax brackets, and Social Security Benefit Calculators. The 45% income replacement target (excluding Social Security and assuming no pension income) from retirement savings was found to be fairly consistent across a salary range of $50,000-$300,000, therefore the savings rate suggestions may have limited applicability if your income is outside that range. Individuals may need to save more or less than 15% depending on retirement age, desired retirement lifestyle, assets saved to date, and other factors. See footnote 3 for investment growth assumptions.
Fidelity developed the savings rate targets through multiple market simulations based on historical market data. These simulations take into account the volatility that a variety of asset allocations might experience under different market conditions. Given the above assumptions for retirement age, planning age, wage growth and income replacement targets, the results were successful in 9 out of 10 hypothetical market conditions where the average equity allocation over the investment horizon was more than 50% for the hypothetical portfolio. Remember, past performance is no guarantee of future results. Performance returns for actual investments will generally be reduced by fees or expenses not reflected in these hypothetical calculations. Returns also will generally be reduced by taxes.
Savings rate targets are hypothetical illustrations, do not reflect actual investment results or actual lifetime income, and are not guarantees of future results. Targets do not take into consideration the specific situation of any particular user, the composition of any particular account, or any particular investment or investment strategy. Individual users may need to save more or less than the savings target displayed depending on their inputs retirement age, life expectancy, market conditions, desired retirement lifestyle, and other factors.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917