How Much Do You Need to Retire?

The success or failure of a retirement plan depends on a number of variables.

Fernando Luque 25 August, 2021 | 12:28AM
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When preparing for our future retirement, many of us spend hours studying the optimal portfolio allocation, different investment options, possible withdrawal rates, and many other complicated factors. But there is one metric that often receives less attention, even though it is a much more decisive factor in being able to retire when we would like and in the financial conditions we would like: the amount of money we need to save to actually be able to retire comfortably. 

Research conducted by Fidelity Investments in the US attempts to answer this very question. Its research suggests that investors could reasonably target a retirement nest egg amounting to 10 times their final salary at age 67. By age 35, investors should aim to have set aside a retirement kitty equal to twice their current salary, with retirement assets escalating to four times current salary by age 45,  and seven times salary by 55.

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About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor Editor of Morningstar Spain.

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