How Much Should You Save By Your 50s & 60s For Retirement

Matt | Personal Finance

How Much Money Should You Save By Your 50s & 60s For Retirement? #retirementplanning #personalfinancetips #retirementsavings   If your goal is financial independence, you’ve probably wondered: How much should I be saving to ensure a comfortable future?   To follow on from my Short on Savings in your 30s and 40s, in this video, I share Fidelity’s guidelines on how much you should save by your 50s and 60s, and I share actionable tips to help you increase your own savings.   #savingmoney #moneytips #personalfinance #wealth #wealthbuilding #saving #savingmoneytips

Transcript

00:00Fidelity recommends having six times your salary saved up, so that would mean if you're earning

00:05£60,000, the savings target would be £360,000 by the age of 50. The key focus for this age

00:13group is to review your savings and investment portfolio against your retirement plan.

00:18Wealth preservation starts to become more of a focus. It's typically recommended to review

00:23your investment mix to make sure that your investments are less risky and more stable

00:27the closer you are to retirement. It's also at this point that you start to look at turning your

00:32investment portfolio into investments that can generate a regular income to support your pension

00:38living expenses, rather than having all your investments focused on wealth appreciation.

00:43Again, it's best to speak to a financial advisor as they will look at a number of factors,

00:47including things like based on your lifestyle and your planned retirement age, whether you'd outlive

00:53your current savings forecast. And they can also help you to model the best and worst case scenarios

00:58for your retirement. By the age of 60, the savings target is to have eight times your salary. And by

01:0467, the target is 10 times your salary. At this point, you really want to make sure that you have

01:09enough saved up to maintain your lifestyle in retirement. Again, review your savings and investments

01:15with a financial advisor to make sure that before you stop working, your finances are in order to

01:21support your retirement. You really want to be able to enjoy this time with family and friends.

01:26You've earned it from all of those years of managing your finances. So in summary, Fidelity's

01:31guide goes from targeting to save at least one times your salary by 30, all the way up to targeting

01:37to save 10 times your salary by 67. Fidelity do say these milestones are aspirational, and it's unlikely

01:44that you'll meet all of them across the different age groups, but they can serve as helpful goalposts

01:49to make a plan to make sure that you have enough money saved to support the lifestyle that you

01:54want in retirement.

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