By age 60, aim for about eight times your annual salary in retirement savings. A salary multiple expresses savings as a multiple of yearly pay, so a $100,000 earner would target about $800,000 under the Fidelity retirement savings guideline. The number is a planning checkpoint, not a guarantee. It suits workers who want to maintain pre-retirement lifestyle through later life.
Table of Contents
- What sits behind the 8-times target?
- How close are most savers at 60?
- What role do Social Security and spending play?
- How can you close the gap after 60?
What sits behind the 8-times target?
Fidelity says the multiples assume starting saving at age 25. They also assume saving 15% of pay yearly, including employer match, with over half in stocks. The target also assumes you maintain pre-retirement lifestyle to age 93.
Later starts, career breaks, lower saving rates, or conservative allocations change the result. Use eight times pay to test progress, not to judge success. Lower pay needs fewer dollars for the same multiple, while higher pay needs more.
How close are most savers at 60?
Vanguard data for 2024 show average 401(k) balances of $271,320 and a median of $95,642 for ages 55-64, well below eight times salary for typical earners, according to the Motley Fool Research summary of Vanguard data. Fidelity plan data point the same way, averaging about $260,800 at ages 55-59 and $254,400 at 60-64.
The gap means many near-60 workers need extra saving years or lower spending plans. A median far below the average also signals uneven savings. Half of savers hold less than the median, while a smaller group with large balances lifts the average.
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What role do Social Security and spending play?
Fidelity estimates retirees spend 55%-80% of pre-retirement income. After Social Security, personal savings must replace about 45% to preserve lifestyle.
The Social Security Administration reports retired workers averaged about $1,975 monthly in December 2024 and about $2,071 in January 2026, covering roughly 40% of average earnings, in its Social Security Administration benefit FAQ. Workers born in 1960 or later reach full retirement age at 67. Claiming at 62 can cut benefits by up to 30% for life under Social Security reduction rules.
How can you close the gap after 60?
A shortfall at 60 still leaves room to act. Focus on saving more, aligning spending plans, and timing benefits carefully.
The IRS allows workers ages 60-63 to make an $11,250 SECURE 2.0 super catch-up plus the $24,500 elective deferral in 2026, totaling $35,750, under IRS catch-up contribution rules. That extra room can add meaningful dollars during peak earning years.
- Lift yearly saving, including employer match, closer to 15% of pay.
- Check stock exposure against the over-half-stocks assumption and personal risk limits.
- Compare early versus later Social Security claiming before locking in a cut.
- Use catch-up eligibility if age and plan rules allow.
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