Overview
- Vanguard-linked reporting shows a majority of Americans are behind, with about 58% not on track to retire comfortably.
- JPMorgan’s analysis finds lower- and middle-income households can lean more on Social Security, suggesting savings rates around 5% below $90,000 in income and closer to 10% at $100,000 or more, while higher earners may need seven-figure targets.
- For people in their 40s, workplace plan contributions average about 11%–12%, yet planners recommend moving toward a 15%–20% total rate and hitting salary-multiple milestones such as roughly 3× by 40, 6× by 50, and 10× by 67.
- Actionable steps include capturing the full employer match (about 4.6% on average), automating 1%–2% annual increases, using tax-advantaged 401(k)s and IRAs, and leveraging age‑50 catch‑up limits in 2025 ($7,500 extra in 401(k)s and $1,000 in IRAs).
- Illustrations show that saving $300 a month from age 25 can grow to roughly $660,000 by 65 at a 6.69% annual return, while experts warn very early retirees should aim beyond the 25× rule due to longer time horizons and healthcare and inflation risks.