Fidelity Breakdown | Exact Retirement Savings You Need by Age

00:00 Intro
01:21 Common Retirement Ages
02:17 Fidelity - Multiple of Income
03:54 Example
04:24 Impact of Age
05:25 Example 2
07:06 Withdrawal Rates
08:10 Social Security
09:39 4% Rule
10:37 Bloopers

Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

Thanks for watching, I appreciate you!

[tinaishatucker]

I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement.

[Peace-juus]

I retired at63, I was totally burned out as a nurse...I needed to for my health...within 1 year I lost 25 pounds of stress weight...7 years later I have been practicing yoga 3-5 times a week for 19 months and I am in the best health ever, and no stress...I am happy, I laugh, and enjoy life

[machineoutlivestheman]

Thanks for your often overlooked perspective on this. As a 50 year old I would need :

60, 000 salary = 360, 000
200k salary = 1.2 m

That’s a very large swing and doesn’t take into account just how stingy I plan to be in retirement and my willingness to subsist on ramen noodles if it means I can retire early :)

[HighCountryRambler]

Fidelity is assuming you've gauged your expenses based on your income, which a growing number have not with record debt.
I've had a Fidelity 401K with past companies for over 30 years, now IRA. I followed their guidelines when I retired at 64 and after 6 years haven't needed any of it because of like you said, rental, pension and SS. Glad your bringing this up to get people to save, but also look for alternate income streams in retirement, not on the (Dave Ramsey) "roller coaster". Great video.

[damienbates]

Totally retiring at 55. Still have to figure out what I’m retiring too, but I think I can develop a plan.

[AG-sogl]

Go Go years until. 70, after that folk generally slow down hence expenses fall. I retired early at 55 to enjoy this precious phase in life.

[snakeonia]

Expenses matter people. Way more than a multiple of an income.

[peaceall]

You can’t cover it all Erin, but building generational wealth can also be a factor. Those of us baby boomers who believe we had it easier, want to ensure our offspring have added financial stability, by preserving all our principal (even adjusted for inflation). And this legacy can build a brighter future indefinitely. So aiming for 7-8% rates of return on an investments, while withdrawing 4% or less for retirement income, ensures at least 3% growth to offset inflation. Thus protecting ‘all’ principal going forward. Peace John

[bradleysargent]

My goal is 59.5. Or at least switch careers by then and do something else with more life flexibility. I doubt we will hit those earning / age milestones by Fidelity. We might come close if you take what we make and subtract the investment contributions for retirement and our mortgage. The amount left over multiplied by the Fidelity guidelines is closer, but still a little short.

[rst]

I see posts from a lot of people that feel that social security is trying to cheat them out of their benefit, that they want you to wait until 70 because you'll likely die before you collect your benefit. The real answer is that social security is giving you a choice, realizing that everyone's circumstances are different. You get to choose which is best for you.

[alanm]

Thank you for this video Erin! I guess I'm doing good then, I have 20 time my salary and going to retire at 60 the end of this year! Also, love the bloopers at the end!!

[Lugnuts]

I retired at 57 and an intake of just 40% of my pre-retirement income is plenty for me. I am definitely middle-class, not high income by any stretch of the imagination. The 80% replacement rule probably scares people unnecessarily.

[dj-dgwx]

Love the outtakes at the end!😂
Thanks for the reasonable info. I just subscribed-

[vincentdesalvo]

Like most planning websites they use withdrawal rates that are off course and usually upside down. Using firsthand experience from our retirement group, normal you start out on the higher withdraw rate and drop off as you get older. Key is don't go into retirement with debt or bare minimum at least and educate yourself on the subject and get a flexible plan, crap happens. If you can't do that hire a CFP, but interview at least 3 or 4 and see how their plans are different. Great Insite on all your videos.

[edwardstewart]

You are one smart lady...love how you do your homework!

[papster]

Great information and additional detail on these guidelines! These numbers can definitely be used for ballpark information prior to hitting the retirement red zone - but once you are within 10 or so years of retirement it is best to start using more robust calculators and more specific numbers to you (as you indicated).

Love the bloopers!!

[scotwelker]

Your income at retirement really means nothing if you don't need that income. I paid off my home prior to retirement and had an excess of disposable income. What I needed after retirement was far lower than what I made during my working years. It's all about the expenses. Nothing else really.

[leeh]

I'm 55 and shooting for 60. That calculator would be more helpful if it had more options, but it's a starting point...

[drticktock]

It Does depend...in retirement are you planning to travel, have season tickets, get your pilots license...OR...sit on your frontporch drink lemonade and watch the birds? I'm Not saying one is better than the other just different and needing different amounts of $$$.

Also, geography plays a huge role. San Fran is different than Omaha.

[lmelior]

What's kind of weird about these benchmarks is that once you hit one, the rest are pretty close to being inevitable unless you have large jumps in income. For the example case where the person makes the same salary adjusted for inflation their whole career, as long as they have 1x at 30, then *even without saving another dime* at an annualized, inflation-adjusted 7.2% rate of return, they will have 8x at 60. Even if, once you hit 1x at 30, you only contribute enough to max out an employer match, you'll still blow way past the later benchmarks.

So these things are handy to have early in your financial journey, but later on it makes way more sense to focus on expenses. And even then you can't often can't use your current expenses to estimate unless you're very close to retirement! For example my wife and I are in our early 40s with 4 kids (and all of their food, clothing, school, and activities) in our house with a mortgage. By age 55 we will likely have zero kids in a fully paid-for house. Our expenses in retirement are going to bear very little resemblance to how they look now!