Here's How Much You Should Have Invested for Retirement at Age 40
Are your retirement savings on track to meet your retirement goal? It's not always an easy question to answer. That money is growing while you're making new contributions to the fund. The amount may not look like much right now, but you know you'll be adding cash to it -- and making more gains on all of it -- between now and then.
There are some basic benchmarks, though, that can generally tell you if you're making enough progress. Here's a rough estimate of how much you should have saved for retirement by the time you're 40.
There are a couple of assumptions that must be made to determine if you're saving enough for retirement. Chief among them is that your ultimate retirement goal is replacing at least most of your work-based income once you stop working. The rule of thumb is to plan on generating at least 80% of your last year's salary once you start living off of your retirement savings. Of course, some retirees aim to reproduce 100% of their employment-based wages.
Source Fool.com
