Money Magazine this month published a chart that quickly tells you if you’re on track to retire at age 60. If you hope to retire at age 60, your savings should equal this number times your salary:
The chart assumes a 35-year retirement at age 60 with 80% of pre-retirement income. It also assumes social security starts at age 62, a 4% real rate of return (after inflation), and an initial withdrawal rate of 4%, adjusted each year for inflation. For those with a pension, it assumes the payments equal 25% of pre-retirement income. And for part-time work in retirement, it assumes that will continue for 10 years during retirement and equal 25% of pre-retirement income.
And if you like calculators as much as I do, click here for an online version of this chart. If you find the results a bit depressing, feel free to share your frustrations in a comment.