Am I on track for retirement?

TL;DR. By age 60 you should have roughly 8x your current income saved; by 67, about 10x. But a retirement readiness calculator reveals that real readiness depends on spending rate, Social Security timing, healthcare costs, and portfolio allocation far more than a single savings multiple. Use a retirement readiness score to benchmark where you stand, then stress-test the gaps.

Savings multiples are a starting point, not an answer

The most cited retirement savings benchmark comes from Fidelity's age-based multiples: save 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. These assume a 15% savings rate, a 67 retirement age, and a goal of replacing roughly 45% of pre-tax income from savings (with Social Security covering the rest).

Here is a worked example with 2026 numbers. A 55-year-old earning $120,000 per year should have about 7x salary saved — roughly $840,000. She plans to retire at 67 and expects the average Social Security benefit at full retirement age of about $2,000 per month ($24,000/year). Under the 4% withdrawal rule, her $840,000 supports $33,600 in annual withdrawals. Combined with Social Security, that is $57,600 — a 48% replacement rate. If she needs 80% replacement ($96,000), she has a gap of $38,400 per year, or roughly $960,000 in additional savings needed at retirement.

That single calculation — comparing projected income to projected spending — is what a retirement readiness score quantifies. It turns a vague feeling ("am I saving enough?") into a specific number and an actionable shortfall (or surplus).

Try it with your numbers

What a good retirement readiness calculator should show

• A readiness score or percentage comparing projected retirement income to projected spending.
• Age-based savings benchmarks so users can see where they fall relative to standard guidelines.
• Social Security income estimates at different claiming ages (62, FRA, 70).
• A shortfall or surplus dollar amount with the additional monthly savings needed to close the gap.
• Sensitivity to key variables: retirement age, rate of return, inflation, and spending level. AdvisorCal's Retirement Readiness Calculator handles all of the above. Pair it with the Social Security Break-Even Calculator to optimize claiming age, or the Withdrawal Longevity Calculator to stress-test how long savings will actually last.

Key facts

• Fidelity savings multiples: 1x salary at 30, 3x at 40, 6x at 50, 8x at 60, 10x at 67.
• Average Social Security benefit at FRA (2026): approximately $2,000/month ($24,000/year).
• 4% withdrawal rule baseline: withdraw 4% of the portfolio in year one, adjust for inflation each year thereafter.
• Replacement rate target: most planners recommend replacing 70-80% of pre-retirement income.
• 2026 401(k) contribution limit: $23,500 ($31,000 with catch-up for age 50+).
• Median retirement savings, age 55-64: approximately $185,000 (Federal Reserve SCF) — well below the 7-8x benchmark for most incomes.

Common follow-ups

What if I'm behind on the savings multiples — is it too late? Not necessarily. The multiples assume you started saving at 25. If you are behind at 50, maximizing your 401(k) contributions with the $7,500 catch-up provision, delaying Social Security to 70, and reducing planned spending can close a substantial gap. A retirement readiness score recalculates in real time as you adjust these inputs.

How does Social Security timing change my readiness score? Claiming at 62 reduces your benefit by up to 30% compared to full retirement age. Delaying to 70 increases it by 24% above FRA. For someone with average life expectancy, delaying often adds $50,000-$100,000 in lifetime benefits. The Social Security Break-Even Calculator shows the exact crossover age.

Should I include my home equity in retirement savings? Most retirement readiness benchmarks exclude home equity because you cannot spend it without selling or borrowing. If you plan to downsize, include only the net proceeds you expect to invest — not the full home value. A conservative approach counts home equity as a backup, not a primary income source.

Am I ready to retire if I hit the 10x multiple? The 10x guideline assumes average spending and average Social Security. If your spending is above average, you need more. If you have a pension, you may need less. A retirement readiness calculator personalizes the target by using your actual expenses, income sources, and retirement age rather than relying on a one-size-fits-all multiple.

When this doesn't apply

Savings multiples and readiness scores assume a traditional retirement funded by personal savings and Social Security. They are less useful for business owners whose wealth is concentrated in a single illiquid asset, for individuals expecting a large inheritance, or for those with a defined-benefit pension that covers most expenses. In those cases, the calculation shifts from "do I have enough saved?" to "can I convert this asset or income stream into reliable cash flow?" A financial advisor can model those scenarios with tools designed for concentrated holdings or pension analysis.

Sources

• Fidelity Retirement Savings Guidelines
• Social Security Administration — Benefit Amounts

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