Are You on Track for Retirement? Understanding Fidelity’s Savings Benchmarks

For many people, one of the biggest financial questions is deceptively simple: Am I on track for retirement? It’s a question that everyone eventually faces, but the answer is far from universal. Even major financial institutions like Fidelity, T. Rowe Price, and JPMorgan Chase offer slightly different benchmarks. Each of these guidelines is built on assumptions, averages, and broad data designed for the masses — not for individual circumstances.

Still, Fidelity’s framework has emerged as one of the most widely recognized and referenced retirement savings guidelines today. It offers a simple, age-based roadmap that can help savers gauge whether they’re progressing toward long-term financial security.

The Fidelity Retirement Savings Benchmarks

Fidelity’s model provides clear savings milestones tied to your current salary, not your starting one. The general rule of thumb looks like this:

• By age 30: 1x your annual salary saved
• By age 35: 2x your salary
• By age 40: 3x your salary
• By age 50: 6x your salary
• By age 67 (retirement age): 10x your salary

The logic behind these checkpoints is grounded in compounding growth and consistent saving habits. Early milestones—like hitting 1x your salary by 30—help establish a foundation for compounding returns to accelerate over time. By the time you reach your 40s, the power of compound interest should start taking over, allowing your investments to grow more significantly even if your savings rate remains steady.

To make this clearer, here’s an example:

• At 30, earning $60,000 → save $60,000
• At 40, earning $85,000 → save $255,000
• At 50, earning $120,000 → save $720,000

Your savings target adjusts as your income increases. It’s designed to evolve with your financial life rather than stay static based on your first paycheck.

Why Income Growth Can Skew the Math

Of course, life rarely follows a predictable, upward income curve. Some people experience stagnant wages for years before receiving a big promotion or career change that boosts their salary dramatically. When that happens, Fidelity’s formula might suddenly make it seem like you’re “behind” — but that’s not necessarily true.

A pay jump is always a win. It might temporarily make the benchmarks look unreachable, but it doesn’t erase the progress you’ve already made. In reality, it’s an opportunity to increase your savings rate and accelerate toward your long-term goals.

The Key Assumptions Behind Fidelity’s Guidelines

Like any rule of thumb, Fidelity’s retirement benchmarks are built on specific assumptions. They assume that you:

1. Save at least 15% of your income (including any employer match).
2. Invest in a diversified portfolio capable of achieving long-term growth.
3. Retire at age 67, drawing about 45% of your pre-retirement income from investments.
4. Cover the remaining 55% of your expenses through Social Security or other sources.

If you can consistently meet those conditions, the model suggests you’ll have enough assets to sustain a 30-year retirement comfortably.

The Dual-Income Difference

While Fidelity’s system works well for single earners, things get more nuanced for dual-income households. The company’s benchmarks don’t offer separate savings multiples for couples, but it’s easy to see how the math changes when two Social Security checks and shared expenses come into play.

Let’s look at an example:

Suppose a couple retires at age 67. One partner receives $2,700 per month from Social Security, and the other gets $2,300—a combined $5,000 per month or $60,000 per year. If their total annual spending goal is $90,000, then Social Security already covers two-thirds of it. They only need to draw $30,000 from investments each year.

If their household income before retirement was $120,000, and they met Fidelity’s 10x goal by saving $1.2 million, that $30,000 withdrawal represents just 2.5% of their portfolio. That’s well below the traditional 4% rule, putting them in a sustainable and secure position.

In this case, Fidelity’s 10x target doesn’t just replace 45% of income — it could replace 70–80% of the couple’s pre-retirement spending needs, thanks to dual Social Security benefits and lower living costs.

The Power of Frontloading Your Savings

One of the smartest features of Fidelity’s plan is that it encourages frontloading your savings—saving aggressively in your early working years when your lifestyle expenses may be lower. The earlier you start, the longer your investments have to compound.

Reaching early milestones like 1x by 30 or 2x by 35 can create massive advantages later. By the time you’re in your 40s or 50s, your portfolio’s growth can outpace your contributions. In fact, many people who hit their early benchmarks end up exceeding the 10x target well before retirement age, giving them the flexibility to retire early or adjust their spending goals.

The Pros and Cons of Fidelity’s Framework

Like any financial model, Fidelity’s system comes with both strengths and weaknesses.

Pros

• Clear and motivating: The benchmarks are easy to understand and track.
• Encourages discipline: The age-based goals promote consistent saving and investing.
• Frontloads growth: Early saving magnifies long-term compounding effects.
• Flexible for interpretation: While designed for individuals, it can be adapted for couples or households with some tweaks.

Cons

• Can feel unrealistic: Graduating late, starting in debt, or managing early-life expenses can make hitting 1x by 30 challenging.
• Assumes steady savings: Real life often brings uneven income, unexpected costs, or years with lower contributions.
• One-size-fits-all: Not every career follows the same trajectory. Those with late income growth or fluctuating employment might need a more personalized model.

Ultimately, these benchmarks should be seen as aspirational, not absolute. They’re meant to guide, not to dictate. Falling short of a target doesn’t mean failure—it simply provides context to assess your progress and make adjustments.

Finding Your Own Path to Financial Freedom

The real takeaway from Fidelity’s model is the importance of consistency. Whether you can save 5%, 10%, or the full 15%, what matters most is developing the habit and sticking with it through your entire career. Over time, those steady contributions—combined with the power of compounding—can put you in a position of financial independence.

There is no single “right” number or “perfect” path to retirement readiness. Each person’s financial life is shaped by their goals, career, health, and family situation. Fidelity’s guidelines simply offer a helpful framework to measure your progress and keep you moving toward long-term financial security.

Final Thoughts

Retirement planning is deeply personal, but it doesn’t have to be overwhelming. Fidelity’s savings benchmarks offer a practical structure—one that motivates early action, rewards consistency, and encourages financial mindfulness throughout your working life.

Whether you reach the 10x mark or not, the key is building a system that supports your version of financial freedom. The earlier you start, the more control you have over your future. Because in the end, it’s not just about hitting a number—it’s about achieving peace of mind and the ability to live life on your terms.

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