How much should you save for retirement early on? Retirement-plan provider Fidelity recommends having the equivalent of your salary saved by the time you reach 30. That means if your annual salary is $50,000, you should aim to have $50,000 in retirement savings by 30. Retirement accounts such as 401(k)s and traditional IRAs allow you to put away a portion of your pretax salary and continue to accrue interest on that balance over time.
While that can be a daunting figure, start by saving what you can. You can gradually increase your contributions over time. Source www.cnbc.com
How much should you have saved for retirement?
The average employee contribution rate for Americans in this age group is 8.3%. The average 401(k) balance for people between the ages of 30 and 39 is $50,800, according to data from Fidelity’s retirement platform as of the fourth quarter of 2020.
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