If You Don’t Have This Much Money in Your 401(k) by Age 40, You’re in Trouble

People in their prime earning years aren't saving enough, according to CNBC

401k
By Kirk Miller / June 22, 2019 9:26 am

Just 36% of non-retired adults in the U.S. think their retirement savings is on track.

Given that your 40s are your peak earning years, CNBC Make It and retirement-plan provider Fidelity checked in to see how Gen-Xers were doing with their 401(k) planning.

The good news is that Americans between the ages of 40 and 49 had an average 401(k) balance of $102,700 and contributing 8.5% of their paychecks, according to the report. Fidelity actually suggests saving 15% of your salary toward retirement (counting both your contribution and company matching) so you can have 10 times your final salary in savings.

NerdWallet offers a retirement calculator here, if you’re worried.

The really bad news? A quarter of U.S. adults have no retirement savings at all, according to CNBC. Some advice from article author Kathleen Elkins is to enroll in a company 401(k) immediately if you can and haven’t done so yet. And whatever your case, start setting aside money now, be it a 401(k), IRA, health savings account or normal investment account.

(Photo: Marco Verch/Flickr Creative Commons)

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