Retirement Savings
Take Our 30-Second Retirement Challenge








Are you saving enough
for retirement?
at compared with T. Rowe Price’s
retirement savings guidelines.












Are you saving enough
for retirement?
at compared with T. Rowe Price’s
retirement savings guidelines.






annual salary
saved for retirement

Benchmarks are based on a target multiple at retirement age
and a savings trajectory over time consistent with that target
and the savings rate needed to achieve it. We assume the household
starts saving 6% at age 25 and increases the savings rate by 1% annually
until reaching the necessary savings rate. Household income grows at 5%
until age 45 and 3% (the assumed inflation rate) thereafter. Investment
returns before retirement are 7% before taxes, and savings grow tax
deferred. The person retires at age 65 and begins withdrawing 4% of
assets (a rate intended to support steady inflation-adjusted spending
over a 30-year retirement). Target multiples at retirement reflect
estimated spending needs in retirement (including a 5% reduction from
preretirement levels); Social Security benefits (using the SSA.gov
Quick Calculator assuming claiming at full retirement ages and the
Social Security Administration's assumed earnings history pattern);
state taxes (4% of income, excluding Social Security benefits); and
federal taxes (based on rates as of January 1, 2018). While federal
tax rates are scheduled to revert to pre-2018 levels after 2025,
those rates are not reflected in these calculations. These benchmarks
assume you'll be dependent primarily on personal savings and Social
Security benefits in retirement. However, if you have other income
sources (e.g., pension), you may not have to rely as much on your
personal savings, so your benchmark would be lower. More detailed
information, including benchmark ranges, can be viewed
here.
This information is for illustrative purposes only. The material
is provided for general and educational purposes only, and is not intended
to provide legal, tax, or investment advice. This material does not provide
fiduciary recommendations concerning investments or investment management.
201909-938537