Find Your Number.
Your Move.
Discover exactly how much you need to retire, whether you’re on track, and the steps to close any gap — personalized to your career stage.
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Which stage of your career best describes you?
Each path covers the same 3 topics but with advice, benchmarks, and action steps tailored to your age group and the decisions that matter most to you right now.
Early Career
You’re building your foundation. Time is your greatest advantage — learn how to use it to build wealth that grows exponentially over the next 30+ years.
Mid-Career Builder
You’re in your prime earning years. Discover how to accelerate savings, bridge any gap, and lock in the number that gets you to a comfortable retirement.
Pre-Retirement Planner
Retirement is within reach. Sharpen your target, stress-test your income plan, and make the final moves that put you in the strongest possible position.
Are You Saving Enough for Retirement?
Most people have a vague sense they should be saving more — but without a benchmark, it’s impossible to know if you’re on track or falling behind. This topic gives you the tools to find out, and the steps to act on what you discover.
The Savings Multiplier: Age-Based Benchmarks
One of the most practical ways to check your progress is the salary multiplier rule. The idea is simple: by certain ages, you should have saved a specific multiple of your annual salary. These aren’t hard rules — they’re guideposts that give you a concrete number to measure against right now.
| Your Age | Target Savings | Example (at $70k salary) |
|---|---|---|
| By 30 | 1× your salary | $70,000 |
| By 35 | 2× your salary | $140,000 |
| By 40 | 3× your salary | $210,000 |
| By 50 | 6× your salary | $420,000 |
| By 60 | 8× your salary | $560,000 |
| By Retirement | 10–12× your salary | $700k–$840k |
Divide your total retirement savings by your annual salary. That’s your current multiplier. Compare it to the table above. If you’re at or above the target for your age — you’re on track. If you’re behind — keep reading.
What the Numbers Actually Mean
Your Action Plan
Early Career (20s – 30s)
Participants in their 20s and 30s may benefit from one of the most powerful advantages in personal finance: time. Even if you’re behind on the multiplier benchmarks above, the decisions made in the next few years could have a significant impact on long-term outcomes.
Consider Enrolling
If you haven’t already, you may want to consider enrolling in your employer’s 401(k), 403(b), or 457(b) plan. Starting sooner may allow more time for potential compounded growth.
Take Advantage of Employer Matching
If your employer offers a matching contribution, contributing enough to receive the full match may be worth considering. Employer matching can meaningfully increase the total amount contributed to your account.
Consider Automating Contributions
Setting up automatic paycheck contributions may help build a consistent saving habit over time. Many participants find this approach easier to maintain.
Consider Increasing Your Rate Over Time
When you receive a salary increase, you may want to consider gradually increasing your contribution rate. Even small, incremental increases over time may have a meaningful impact on your long-term balance.
A total contribution rate of 10–15% of gross income is a commonly referenced general target2 (including any employer match). If that seems out of reach today, starting at a lower rate — even 3% — and gradually increasing over time may be a reasonable approach.
Mid-Career (40s)
Your 40s are your highest-earning decade — and your most important for closing any savings gap. If you’re behind on the benchmarks, this is the decade where you close the distance. You have 20+ years of growth still ahead, and the IRS allows significant contributions.
Consider Maximizing Your Workplace Plan
The 2026 employee elective deferral limit for 401(k), 403(b), and 457(b) plans is $24,500.5 If you’re not currently maximizing contributions, you may want to consider allocating a portion of future salary increases toward retirement savings.
Consider Adding an IRA
Adding a Roth or Traditional IRA alongside a 401(k), 403(b), or 457(b) may provide an additional $7,500/year in tax-advantaged savings.5 Consulting a tax advisor may help determine which type is most appropriate for your situation.
Consider Directing Windfalls to Savings
Bonuses, tax refunds, or other unexpected income may represent an opportunity to increase retirement savings before other spending commitments arise.
Watch the gap
Gradual lifestyle inflation can affect long-term savings capacity. Being thoughtful about recurring expense increases may help preserve more for retirement.
Gradually increasing your savings rate — for example, by 1% every 6 months — may lead to a meaningful improvement in your long-term retirement outlook over time.
Pre-Retirement (50s – 60s)
For those approaching retirement, the IRS provides additional contribution options worth considering. Catch-up contribution rules let you save significantly more than younger workers, and the decisions you make in the next decade determine the retirement you actually have.
Catch-up contributions
At age 50 or older, you may be able to make additional catch-up contributions of $8,000/year to your 401(k), 403(b), or 457(b) plan on top of the standard $24,500 limit — that’s $32,500 total.5
Consider Available Catch-Up Options
IRAs also allow catch-up contributions at 50+: an additional $1,100/year on top of the standard $7,500 limit.5 Utilizing available contribution options may help accelerate savings in the years leading to retirement.
Review Your Income Picture
Total up your expected retirement income: Social Security, any pension, and planned savings withdrawals. Compare to your estimated expenses. That gap is what you’re solving for.
Consider Protecting Your Portfolio
Shift gradually toward a more balanced allocation as retirement approaches. Sequence-of-returns risk is real — a large loss early in retirement is far more damaging than one later.
Delaying retirement by even 2–3 years may have a meaningful impact: additional time invested, potentially higher Social Security benefits (up to 8% more per year you delay past 62)6, and a shorter withdrawal period.
Not everyone has access to a workplace retirement plan — and that’s okay. There are tax-advantaged options available that may be worth exploring with the help of a qualified advisor.
- Traditional IRA: Contributions may be tax-deductible. Investments grow tax-deferred. Taxes paid on withdrawal in retirement.
- Roth IRA: Contributions are after-tax, but your money grows completely tax-free. Qualified withdrawals in retirement are 100% tax-free. Best if you expect to be in a higher bracket later.
- SEP-IRA or Solo 401(k): Self-employed? These plans allow contributions of up to 25% of net self-employment income, often far exceeding standard limits.5
- Consider Avoiding Early Withdrawal: When changing jobs, rolling over your 401(k), 403(b), or 457(b) into an IRA or your new employer’s plan may help avoid taxes, potential early withdrawal penalties, and preserve the potential for continued growth.
- [1]Employee Benefit Research Institute (EBRI). 2023 Retirement Confidence Survey. Washington, DC: EBRI, 2023. ebri.org
- [2][3]Munnell, A. H., & Chen, A. 401(k)/IRA Holdings in 2019: An Update from the SCF. Issue Brief No. 21-9. Center for Retirement Research at Boston College, 2021. crr.bc.edu
- [4]Board of Governors of the Federal Reserve System. Report on the Economic Well-Being of U.S. Households in 2022. Washington, DC: Federal Reserve, 2023. federalreserve.gov
- [5]Internal Revenue Service (IRS). Retirement Topics — 401(k) and Profit-Sharing Plan Contribution Limits; IRA Deduction Limits. U.S. Department of the Treasury, 2024. irs.gov
- [6]Social Security Administration (SSA). Delayed Retirement Credits. Publication No. 05-10147. Washington, DC: SSA, 2024. ssa.gov
How Much Will You Need to Retire?
The most common retirement question is also the most personal: “What’s my number?” There’s no single answer — but there are proven frameworks that get you to a realistic, personalized target you can actually plan toward.
The Income Replacement Rule
The most widely-used starting point: in retirement, you’ll need to replace 70%–85% of your pre-retirement income each year7 to maintain your lifestyle. Some financial planners recommend up to 100% if you plan an active retirement with significant travel or healthcare expenses.
This accounts for the fact that some expenses typically decrease in retirement (no more commuting, payroll taxes, saving for retirement itself) while others can increase (healthcare, leisure).
% of pre-retirement income needed per year in retirement
The 4% Rule Explained
The 4% rule is one of the most cited frameworks in retirement planning. It states: if you withdraw 4% of your portfolio — held in a diversified portfolio made of stocks and bonds — in year one of retirement, then adjust that amount for inflation each year, your money has a high likelihood of lasting approximately 30 years.8
Crucially, you can work this rule backwards to calculate your target: multiply your desired annual income from savings by 25. That’s your portfolio target.
Example A
You need $60,000/year from your portfolio.
Target: $60,000 × 25 = $1.5 million
Example B
Social Security covers $20k. You need $40k more.
Target: $40,000 × 25 = $1.0 million
The 4% rule was designed for 30-year retirements. If you retire early or expect to live into your 90s, consider using a 3.5% withdrawal rate (multiply by 28–29 instead of 25) to build in more cushion.9
Calculate Your Number
For Early-Career Savers: Build Your Framework Now
You don’t need to know your exact retirement number at 28. But building the framework for calculating it puts you years ahead of your peers. Your lifestyle and expenses will change significantly — but the habit of tracking your number is what matters.
- Start with 80%: Use 80% income replacement as your working assumption until you have a clearer picture of your retirement lifestyle.
- Focus on the rate, not the number: Saving 15% of gross income consistently will naturally grow into the right target. Let the math work for you.
- Use a retirement calculator: Plug in your current savings, monthly contribution, and expected return to see what you’ll have at 65. Adjust the rate until you hit your target. Do this once a year.
- Consider a Roth: In your 20s and 30s, you’re likely in a lower tax bracket than you’ll be at peak earnings. A Roth IRA locks in that low tax rate now, and all future growth is completely tax-free.
For Mid-Career Builders: Calculate Your Number Now
In your 40s, it’s time to move from a rough framework to a specific target. You have enough career history to project your income trajectory, and enough time to course-correct if needed.
Step 1: Estimate your annual retirement budget (start with 80% of current income).
Step 2: Estimate your annual Social Security benefit (create a free account at ssa.gov for your projection).
Step 3: Subtract Social Security from your total need. That’s your annual portfolio withdrawal.
Step 4: Multiply by 25. That’s your savings target.
Model two scenarios using a retirement calculator: retiring at 62 vs. 67. The difference in Social Security benefits alone — up to 30% more by waiting — can dramatically change how much you need to save yourself.6
For Pre-Retirees: Stress-Test Your Number
A retirement target calculated 20 years ago needs updating. In your 50s and 60s, your number should be specific, stress-tested, and revisited at least annually.
- Build a real retirement budget: Go line by line. Housing (mortgage-free?), healthcare (Medicare starts at 65, but not before), travel, food, utilities, taxes, long-term care insurance.
- Claim your Social Security estimate: Log in at ssa.gov. Model claiming at 62, 66/67, and 70. The differences are significant and often surprising.
- Test against a bear market: What if the market drops 30% in your first year of retirement? Does your plan survive? A financial advisor can model this scenario.
- Plan for age 90+: Life expectancy is rising. A couple retiring at 65 has a meaningful probability of at least one spouse reaching 90.10 Plan for a 30-year retirement as a baseline.
A HUB RPW advisor can model your specific situation — actual balances, Social Security projections, tax scenarios, and withdrawal strategies — to give you a number and a plan you can rely on.
Factors that increase your need
Expensive retirement lifestyle • High healthcare costs • Early retirement • Renting vs. owning • High-cost location • Long family life expectancy
Factors that reduce your need
Paid-off home at retirement • Pension income • Rental income • Modest lifestyle • Part-time work in retirement • Low-cost location
- [6]Social Security Administration (SSA). Delayed Retirement Credits. Washington, DC: SSA, 2024. ssa.gov
- [7]Scholz, J. K., Seshadri, A., & Khitatrakun, S. Are Americans saving “optimally” for retirement? Journal of Political Economy, 114(4), 607–643, 2006. doi.org/10.1086/506335
- [8]Bengen, W. P. Determining withdrawal rates using historical data. Journal of Financial Planning, 7(4), 171–180, 1994. (Original paper establishing the 4% rule.)
- [9]Pfau, W. D. Capital market expectations, asset allocation, and safe withdrawal rates. Journal of Financial Planning, 25(1), 36–43, 2012.
- [10]Society of Actuaries (SOA). RP-2014 Mortality Tables Report & 2023 Longevity Illustrator. Schaumburg, IL: SOA, 2023. soa.org
The Power of Compounding Interest
Compounding interest is widely considered one of the most important concepts in long-term retirement planning. Compounding isn’t just about earning interest — it’s about earning interest on your interest, year after year, in a way that accelerates exponentially over time.
The Numbers That Change Everything
Assume the same investor contributes the same fixed amount every month, earns the same 7% average annual return, and retires at 65. The only variable is when they start.
Estimated balance at age 65 • Same monthly contribution • 7% average annual return
Starting at 30 vs. 45 produces a $700,000 difference 11 — with identical monthly contributions. That gap isn’t from investing more. It’s purely from giving your money more time to compound.
How Compounding Actually Works
In year one, you earn interest on your contributions. In year two, you earn interest on your contributions plus the interest from year one. By year ten, the interest on your interest is compounding on itself. By year thirty, the vast majority of your balance isn’t what you put in — it’s what the compounding generated.
Year 1–10
Growth feels slow. Your contributions make up most of your balance. This is normal — the snowball is still small and just starting to roll.
Year 20–30
Growth accelerates dramatically. Compounding on compounding. In many cases, the final 10 years of a 30-year investment horizon generate more growth than the first 20 combined.13
Your Strategy by Career Stage
Early Career: Time Is Your Unfair Advantage
You have something that no amount of money can buy: decades of compounding runway ahead of you. Illustrative projections suggest a 25-year-old investing $300/month at an assumed 7% return may accumulate more by age 65 than a 40-year-old investing $800/month at the same assumed return.
- Consider Starting Small, Starting Soon: Illustrative examples suggest that starting with even $50/month at age 25 may result in greater long-term accumulation than $200/month started at age 40.
- Try to Avoid Interrupting Compounding: Cashing out retirement accounts when changing jobs may significantly reduce long-term growth potential, as compounding years cannot be recaptured.
- Consider Keeping Fees Low: Research suggests a 1% higher expense ratio may reduce a final portfolio balance by approximately 25% over 30 years.12
- Consider Staying Invested During Volatility: Historical data generally suggests market downturns have been temporary. Selling during a downturn may lock in losses and result in missing a potential recovery.
Starting as soon as reasonably possible may be beneficial. Illustrative projections suggest that $25/week invested consistently starting at age 25 could potentially grow to over $100,000 by age 65 at an assumed 7% annual return — from approximately $52,000 of total contributions.11
Mid-Career: 20+ Years of Compounding Ahead
You haven’t missed the boat. The final 20 years of a compounding curve are actually among the most powerful — because the base is now much larger. $300,000 at 7% grows to $1.16M in 20 years without you adding a single dollar.11 The key now is maximizing what you put in.
- Lump-Sum Contributions May Compound Quickly: Illustrative projections suggest a $10,000 lump sum invested at an assumed 7% return could potentially grow to approximately $38,700 over 20 years.
- Consider Maintaining Contributions During Downturns: Consistent contributions during market downturns may allow you to purchase more shares at lower prices. Consistency through volatility is generally considered a sound long-term approach.
- Consider Reinvesting Dividends: Automatic dividend reinvestment may create additional compounding on top of core portfolio growth.
You may want to consider directing a meaningful portion of unexpected income — bonuses, tax refunds, or other windfalls — toward retirement savings. Once invested, those funds may benefit from potential long-term growth.
Pre-Retirement: Compounding Still Has Years to Work
Even at 58, you likely have 7–15 more years before you’ll begin drawing down significantly. A $500,000 portfolio at 7% grows to $985,000 in 10 years without adding a single dollar.11 Every year you stay invested — and every year you delay drawing down — is compounding working in your favor.
- Extending Your Working Years May Have Impact: Additional contributions, more time for potential growth, and a shorter withdrawal period. Illustrative projections suggest this may be roughly equivalent to adding 20–30% to your final balance.
- Delaying Social Security May Increase Benefits: Each year of delayed claiming past age 62 (up to age 70) may increase your monthly benefit by approximately 6–8%.6
- Consider Maintaining Some Growth Exposure: Holding savings primarily in cash when inflation exceeds interest earned can erode purchasing power. Maintaining some growth-oriented exposure may be worth discussing with an advisor.
- Consider Your Withdrawal Sequence: The order in which you withdraw from different account types may have tax implications. A HUB RPW advisor may be able to help model withdrawal strategies for your specific situation.
A significant portfolio loss in the early years of retirement may have an outsized impact because withdrawals are being made from a reduced base. Maintaining some liquidity — such as 1–2 years of estimated expenses in cash or short-term bonds — is one approach some investors consider.
- Consider Contributing Consistently — Dollar-cost averaging means purchasing more shares when prices are lower and fewer when prices are higher. Historically, this approach has been associated with a lower average cost over time.
- Consider Reinvesting Dividends and Distributions — Never take dividends as cash. Every reinvested dollar creates its own compounding curve running parallel to your principal.
- Consider Keeping Expenses Low — Each 0.1% in fees avoided remains in your account with the potential to compound. Over longer time horizons, fee differences may become a significant factor.
- Try to Avoid Interrupting Compounding — Cashing out, pausing contributions, or moving to cash during downturns may significantly disrupt long-term growth potential.
- Consider Increasing Contributions Over Time — Gradually increasing your contribution rate may amplify the effects of compounding. Even modest annual increases, applied consistently, may meaningfully improve your long-term retirement balance.
- [6]Social Security Administration (SSA). Delayed Retirement Credits. Washington, DC: SSA, 2024. ssa.gov
- [11]Projections assume a consistent monthly contribution, 7% average annual nominal return, and retirement at age 65. Illustrative only; actual results will vary.
- [12]Vanguard Group. The Case for Low-Cost Index-Fund Investing. Valley Forge, PA: Vanguard, 2023. investor.vanguard.com
- [13]Ibbotson, R. G., & Kaplan, P. D. Does asset allocation policy explain 40, 90, or 100 percent of performance? Financial Analysts Journal, 56(1), 26–33, 2000.
What You’ve Covered
Here’s a quick look at what you learned across all three topics — and why it matters for your retirement journey.
Knowledge is the first step. The next is making it personal — hit Finish to complete the course.
Lesson Complete!
You now have a framework for measuring your retirement readiness, a method for calculating your personal target number, and a clear understanding of why every day you stay invested works in your favor. The next step is making it personal.
Talk to a HUB RPW Advisor →Quarter 3 course coming soon. Watch for your invitation.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from HUB International or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision, and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for informational purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
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