T. Rowe Price and Fidelity set clear income-based benchmarks: aim for multiples of your gross income by certain ages to hit a target nest egg. Those markers translate into concrete savings steps you can automate.
This short guide shows a simple way to turn lifetime goals into a clear monthly plan you can follow from age 25 to 67. It uses common inputs: current income, existing savings, employer match, and your current age.
You’ll learn how leading benchmarks convert into realistic contributions and what a default habit of about 15% of pay typically means in dollars. If you want extra context on Social Security timing, see this practical guide.
Key Takeaways
- Benchmarks (1x–13.5x income) map to age-based checkpoints to help set a plan.
- Use current income, savings, employer match, and age to personalize targets.
- A 15% savings habit often aligns with guidance from major firms.
- Adjust the plan if you’re behind—step increases and catch-up rules matter.
- Investment mix and expected returns change the monthly number you need.
Understand the goal: turning a retirement number into a monthly savings plan
Bridge the gap between long-term benchmarks and regular action by mapping a chosen target multiple to a recurring contribution. T. Rowe Price frames the end goal as roughly 7.5x–13.5x income by 65, while Fidelity targets about 10x by 67 using a 15% savings pace.
Start by choosing a practical target multiple that fits your income and age. Then work backward to a contribution you can automate. As income rises, the multiple keeps your plan aligned with changing needs.
- Pick a target multiple and set an initial contribution.
- Enable small annual increases to keep pace with pay growth.
- Review progress each year and after major life events.
| Plan | End target | Assumed savings rate | Key milestone style |
|---|---|---|---|
| T. Rowe Price | 7.5x–13.5x income by 65 | Ramped savings over career | Age-based multiples (30–60) |
| Fidelity | 10x income by 67 | 15% of income incl. match | Milestones at 30, 40, 50, 60 |
| Practical steps | Automate contributions | Adjust with life events | Revisit annually |
This way keeps the task simple and reduces decision fatigue. If you want more context on timing and claiming strategies, see these planning tips.
How to calculate your monthly retirement savings target
Begin with a short list of numbers: your current age, target retirement age, gross salary, total savings, and expected employer match.
Gathering these inputs makes the rest mechanical. Use a clear target multiple (for example, 10× by age 67 or a 7.5×–13.5× range) and then work backward to a regular contribution.
Simple path to a contribution
- Estimate current multiple: divide total savings by annual income.
- Pick a target multiple and subtract your current multiple to find the gap.
- Multiply that gap by salary to get the dollar amount needed.
- Convert the dollar gap into a monthly contribution using a growth assumption (many plans use ~6%–7% nominal pre-retirement).
Worked example
Age 35, salary $80,000, current savings $120,000 equals ~1.5× income today.
Aiming for about 10×–11× by 67 leaves a gap near 8.5×–9.5×. Multiply that by $80,000 to find the dollar goal.
Practical check: Fidelity’s 10× guideline ties to roughly a 15% annual savings rate (including employer match). If an employer match covers ~3% of pay, personal contributions near 12% of salary fill the rest.
| Input | Value | Calculation | Result |
|---|---|---|---|
| Age | 35 | — | Used to set years to target |
| Salary | $80,000 | — | Base for multiples |
| Current savings | $120,000 | 120,000 ÷ 80,000 | 1.5× |
| Target multiple | 10×–11× | Target − current | 8.5×–9.5× gap |
| Implication | — | Gap × salary | $680k–$760k needed; plan via contributions |
Recalculate each year to update salary, balances, and your rate. Small annual increases keep the plan on track and reduce future strain.
Age-based benchmarks to stay on track with retirement savings
Age-based checkpoints give a quick lens to compare your current balance with widely used targets. These brackets turn complex planning into simple signals you can review each year.
T. Rowe Price ranges
T. Rowe Price offers widening multiples that reflect varied careers and incomes. Key checkpoints include roughly 1×–1.5× by 35, 3.5×–5.5× by 50, 6×–11× by 60, and 7.5×–13.5× by 65.
Fidelity milestones
Fidelity sets decade markers: 1× by 30, 3× by 40, 6× by 50, 8× by 60, and a 10× target by 67. These assume a steady 15% contribution rate including employer match and a growth mix tilted toward equities.
What the ranges assume
- Ramped contributions and ongoing compounding under typical return and income growth assumptions.
- Social Security and taxes factored into projected income needs.
- Use these guideposts to see if you are on track; if below, increase contributions and revisit goals annually.
Set a sustainable savings rate and boost it over time
Adopt a predictable savings rate and use auto-escalation so small changes compound into big results. Fidelity’s research supports aiming for about 15% of income annually (including employer contributions) starting near age 25 to reach roughly 10× by 67. T. Rowe Price shows another path: begin lower and raise contributions steadily.
Practical steps make this achievable.
- Target a total savings rate near 15% of income, counting employer match as part of the rate.
- If 15% is out of reach now, start lower and schedule automatic annual increases of 1%–2% until you hit the goal.
- Always capture the full employer match—it’s guaranteed compensation and speeds progress.
- Align payroll contributions with pay frequency so saving feels consistent and simple.
- When pay rises or you get a bonus, increase the contribution percent rather than reducing take-home pay.
Track the combined total of your contributions and employer amounts each year. Small, regular steps protect your plan from delays and make steady progress across ages.
Key factors that change how much you may need to save
Timing, lifestyle, and investment choices all alter the target you chase. Small differences in these areas can cut or raise the total you need to build.
Retirement age and timing
Delaying the end of work usually lowers your needed multiple. Fidelity shows typical targets drop from about 12× at 65 to 10× at 67 and near 8× at 70.
Lifestyle and spending
Your planned lifestyle matters. Below-average spending trims the goal, while above-average travel or hobbies raises it. Pick a realistic spending profile and adjust the target.
Social Security and claiming
Social security benefits and the age you claim them change replacement income. Higher lifetime income often means Social Security replaces a smaller share, so higher earners may need larger totals.
Market returns and investment mix
Greater equity exposure can boost expected growth but adds volatility. Use scenarios that vary returns and age to see what you may need.
Run a few cases that tweak retirement age, spending, and benefits. Then use that range to set a sensible plan and revisit yearly. See the best retirement income strategies for related guidance.
how much save for retirement monthly
Convert a target multiple into a clear paycheck deduction to keep progress visible and automatic.
Quick rule: aim to contribute about 15% of gross income including any employer match. That rate maps well to common targets such as 7.5×–13.5× by 65 or roughly 10× by 67 under a 7% nominal return assumption.
Precise option: pick a target multiple, find your current multiple, then compute the deposit needed each pay period to close the gap by your chosen age. Use a planner or calculator to test different amounts and market scenarios.
| Step | Action | Why it matters |
|---|---|---|
| Set target | Choose a multiple (e.g., 10×) | Defines the amount to reach |
| Measure | Current balance ÷ income | Shows gap vs. goal |
| Automate | Schedule payroll deductions | Keeps deposits steady through market swings |
| Review | Check annually and adjust | Reflects age, income, and market changes |
Coordinate contributions across accounts and automate increases after raises. If you fall behind an age benchmark, boost the rate now and set staged increases over 12–24 months. See annuity vs lump-sum choices at annuity vs lump-sum choices to align payout planning with your savings plan.
If you’re behind, here are practical ways to catch up
Falling short of age benchmarks is fixable. Start with a few targeted moves that reduce pressure and rebuild progress across years. These actions combine higher contributions, plan features, and budget adjustments to match your situation.
Increase contributions now and schedule future bumps
Raise payroll contributions by at least 1%–2% today and set annual auto-escalation until you hit your target rate.
Use catch-up contributions at age 50 and older
If you are age 50 or older, tap catch-up limits in workplace plans and IRAs to accelerate savings. These extra allowances help close gaps without large one-time transfers.
Trim spending, extend working years, and consider delaying Social Security
Review recurring bills and redirect quick wins to savings. Consider working longer to shrink the required multiple and boost income in later years.
- Get every dollar of your employer match by contributing across the year.
- Rebalance your investment mix so your savings work harder while matching your age and risk tolerance.
- Pay down high-interest debt with a structured plan while keeping match contributions intact.
- Stage increases tied to raises or bonuses to avoid cash flow strain.
- Coordinate 401(k), IRA, and HSA accounts and, if suitable, delay social security to raise later benefits.
Next steps: pick two actions you can start this month—one to raise contributions and one to free up cash—and measure progress each year.
Translate benchmarks into monthly savings at different ages
Use age checkpoints to convert long-term benchmarks into immediate contribution steps. Below are practical sample paths that show what common multiples mean in dollars and actions you can take now.
Sample paths by age
Age 30 — salary $70,000, 1× target: Aim to hold about $70,000. If you’re near that mark, a combined 15% total rate keeps you on track. If short, convert the gap to a deposit each paycheck using your years to target.
Age 40 — salary $90,000, 3× target: Target roughly $270,000. Close shortfalls by increasing contributions now and scheduling automatic 1% annual bumps until you reach your plan.
Age 50 — salary $110,000, 6× target: The benchmark is about $660,000. Use catch-up rules if eligible and recheck asset mix to accelerate growth while managing risk.
Age 60 — salary $120,000, 8×–11× target: Your range is $960,000–$1.32M. Coordinate contributions, allocation, and retirement date to finalize a clear path to your chosen target.
- Convert any gap into a per-paycheck number using assumed returns and years to retirement.
- Update the salary input if income changes and rerun the plan.
- Keep a simple log of annual income, balances, and contribution percent to track trends and course-correct early.
Practical tip: set near-term micro-goals like adding 1% to your contribution every 6–12 months until you reach trajectory. For automated tracking and to refine your plan, consider AI tools such as AI savings trackers.
Tools to plan, track, and adjust your savings rate over time
Tap reputable calculators and planning widgets to translate target multiples and timeline inputs into a clear contribution plan that links to each account.
T. Rowe Price offers calculators like a Retirement Income Calculator and promotes auto-increase features. Fidelity provides planning widgets and Viewpoints that show the impact of age, lifestyle, and market moves on required targets.
- Use a trusted calculator to convert your goal into a per-paycheck amount across accounts.
- Enable auto-escalation in workplace plans so the contribution percent rises without manual steps.
- Set simple reminders to review progress after raises or large market shifts.
- Consolidate account information so you can see total balances and overall savings rate in one view.
“Projections are estimates and not guarantees of future results.”
| Tool | Strength | Use |
|---|---|---|
| T. Rowe Price | Income-focused calculators | Plan contributions |
| Fidelity | Age and lifestyle widgets | Test scenarios |
| Personal tracker | Consolidates data | Track investments & returns |
Final tip: compare assumed returns in your tool to your actual investment mix, document changes, and review annually to keep expectations realistic and aligned with income and age.
Conclusion
Bring the strategy to life by picking a target multiple, automating a deposit, and checking progress each year.
Use age-based benchmarks (T. Rowe Price and Fidelity ranges) and a default ~15% total savings rate as a practical starting point. Adjust for retirement age, lifestyle, Social Security benefits, and market returns so the plan matches your situation and annual income.
If you’re behind, raise your contribution now, use catch-up allowances if eligible, or consider delaying retirement age to ease the required amount. Keep deposits automated across accounts and document changes so you stay steady through market cycles.
Start with one small step today and refine the plan each year. For a quick calculation, try a trusted calculator like this retirement calculator to translate targets into a per-paycheck amount.