The question, “Am I on track?” is the single most common concern I’ve heard over my 25 years as a fiduciary advisor. The good news is that we have reliable benchmarks to assess your progress. The even better news is that with a disciplined strategy, it is almost always possible to adjust course.
Here is a look at the guidelines we use and the actionable strategies we implement to ensure you hit your retirement number.
📊 Benchmarks: The “Income Multiplier” Guide
While your exact retirement number depends on your desired lifestyle, a great way to gauge your progress is by comparing your current savings balance to your current income. This is often referred to as the Income Multiplier Rule.
| Your Age | Recommended Savings Multiplier (x Current Income) | Fiduciary Insight |
| 30 | 1x Annual Salary | Compounding is your biggest asset; saving 1x early is crucial. |
| 40 | 3x Annual Salary | This decade is critical for aggressive growth and minimizing high-interest debt. |
| 50 | 6x Annual Salary | Time to seriously evaluate your tax diversification (Roth vs. Traditional). |
| 60 | 8x Annual Salary | Focus on de-risking and maximizing catch-up contributions. |
| 67 (Retirement) | 10x Annual Salary | Your target for maintaining your pre-retirement lifestyle. |
Source Note: These are general benchmarks. We personalize this target based on your expected retirement age, lifestyle, and Social Security income.
🛣️ Strategies for Hitting—And Exceeding—Your Goal
If you find yourself behind these general benchmarks, don’t panic. Panic leads to costly mistakes. As your fiduciary advisor, we focus on strategic, systematic adjustments that create massive financial momentum.
1. Maximize “Free Money”
This is the non-negotiable first step. If your employer offers a 401(k) match, contribute at least enough to get the full match. This is an immediate, guaranteed return on your investment that significantly accelerates your compounding.
2. Prioritize Tax-Advantaged Accounts
Use the accounts designed to help you save:
- 401(k)/403(b): Maximize your contributions, especially after age 50 when catch-up contributions allow you to save even more.
- IRAs (Traditional or Roth): Use these vehicles to supplement your workplace plan. We help determine whether pre-tax (Traditional) or post-tax (Roth) contributions offer the best tax efficiency for your current income level.
- HSAs: If you have a high-deductible health plan, the Health Savings Account (HSA) offers a powerful triple tax advantage (contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free).
3. The Pay-Raise Principle (Live on the Old Salary)
Whenever you receive a raise, a bonus, or pay off a major debt (like a mortgage or student loan), immediately direct 100% of that extra cash flow into your retirement savings before you adjust your spending. This is the simplest way to aggressively increase your savings rate without feeling a pinch in your current lifestyle.
4. Time is Your Greatest Asset
The power of compounding means the money you save in your 20s and 30s has far more impact than the money you save later. If you are starting late, consistency and a higher savings percentage are key. Delaying retirement by even 1-3 years can dramatically reduce the savings multiple you need, while increasing your annual Social Security benefit.
Need to Determine Your True Retirement Number?
These benchmarks are useful guides, but they are not a personalized plan. Your unique retirement number requires a comprehensive review of your expected expenses, tax liabilities, Social Security estimates, and long-term care needs.
Ready to build a disciplined plan with a fiduciary partner who has seen it all?
